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Business Family Dynamics Case Study Analysis

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Business Family Dynamics Case Study Solution

Background and Facts

Business Family Dynamics a workplace materials retailer for small and average sized organisations has actually lately been associated with planning for a merging with its rival Home Deport, which has influenced effectiveness levels in departmentswith the senior manager associated with legal problems presented by the government Profession Commission. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the future. With obstacles in the form of a potential social change and low staff member morale, the organization requires a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of Business Family Dynamics is boosting uncertainty in the workplace leading to different challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing critical decisions given that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Payment's treatment in the process. Given the truth that the store has a worldwide existence with branches in UK, USA, Canada as well as Germany, political consider each of these nations might have the ability to impact performance or tactical objectives. Federal Trade Compensation's antitrust fit versus the merging occupied useful time of the organization's elderly monitoring suggesting that 'political' factors can have significant ramifications for a worldwide service.

Economic Factors: Economic factors such as the introduction of local business in the worldwide scenario recommend that Business Family Dynamics is thriving in an atmosphere where there is prospective growth of companies. Truth that store clients are mostly looking for office supplies for residence workplaces suggests that the market has a climbing pattern of business owners and home based organisations.

Social factors: Social trends in the economy show that clients are trying to find convenience as well as appealing costs. Market research demonstrates how the consumer for Business Family Dynamics lacks awareness regarding locating options which can offer a mix of convenience and also inexpensive.

Technical factors: Technology plays an important role in Business Family Dynamics's service method particularly as the company is piloting Innovation centers which would certainly use technology sales as well as support in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Habits concerns can be seen in Business Family Dynamics's case as highlighted in this area.

Apprehensions regarding cultural adjustment: There is uneasiness regarding a cultural modification that would certainly happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the employee already showing discontent over this possible action. This anticipated modification has developed anxiety in the work environment which has actually been paired with the past tension of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of employees that can match the stressful atmosphere of a fast-paced company. Not only does this lead to problem in locating the ideal people, it places stress on new hires as can not hold up against the pace and pressure that the organization expects them to bear.

Double Reporting Lines: Newbies find this business culture troublesome and also difficult to manage particularly as populated line connections are meant to be weak generally and unbiased setup as well as efficiency assessment is still done by the strong line supervisor. This suggests that beginners could shed quality regarding their corresponding functions as well as objectives especially as populated line reporting does not maintain them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been guessed that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been capable as well as appropriate for the task but the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Instability: Fear and insecurity can be identified as two significant issues that Lewis would be taking care of specifically as the merger has now be terminated and also two elderly execs of the marketing department would be leaving. The whole duty of the department would be dropping on Lewis's shoulders that would certainly not simply supervise of brining about a cultural modification however would likewise need to prove herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's administration design and also its conflict with the advertising department's role can also be seen as an OB challenge specifically as she has actually been made use of to dealing with problems in the operations division where workers are instructed to focus on procedures and also obtain them. The advertising and marketing division on the various other hand can be seen as a team of people who are used to being nurtured by Krasnow who concentrated extra on result than processes.

Interdepartmental Arguments: Interdepartmental disputes between three departments, advertising, merchandizing and procedures specifically over the appropriation of the marketing mix can be determined as another OB issue. Although the advertising and marketing division does not share the exact same vision as the various other two divisions pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allotment among each other either.

Disintegration in Advertising Department: Disintegration in between the marketing and advertising departments can be identified as one more OB issue which can require further attention. The truth that the advertising and marketing sections in the marketing department are disconnected is avoiding both divisions from getting from each other's experience as well as expertise. Combination of advertising with retailing and also procedures would become more difficult if the advertising division itself is degenerated which can be another prospective OB issue.

Business Family Dynamics Analysis

Various concepts have been utilized to discuss the situations to obtain more clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that subordinates are passive and also lazy, have little ambition and stand up to modification. The situation at Business Family Dynamics is not completely complying with Concept X, it can be seen that new hires are locating this atmosphere rather difficult which may ultimately lead to a better disposition of the management in the direction of Theory X. Also while assessing Lewis's monitoring design, theory X might have been suitable in the operations division to some level however the Marketing department would certainly call for dependence on Concept Y in order to obtain the creativity as well as originality from the teams.

Tuckman's Team effort Concept: As for Lewis's worry concerning bringing harmony in between the marketing and advertising division is concerned, this would at first cause contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the first stage of group advancement, people might not bond, as they are active locating their place in the group. By combining the marketing and advertising division's job, there might coincide first separate which might cause the second phase of 'storming' where the teams challenge one another. Nevertheless, it is only during the third stage or 'norming' when they would collaborate to share concepts before the team can bring about synergy in the fourth stage 'executing'.

When individuals are offered with change, they go into stage one and also so there might be feelings like unhappiness, uncertainty, disappointment, temper, fear, denial and disorientation.The scenario at the advertising division of Business Family Dynamics is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary habits. It is throughout this stage that Lewis will certainly have to give guidance to the department so that they can find a feeling of instructions. It can be seen how Krasnow has actually already made this transition easier by making Lewis get included in the department a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the significance of 'protection requires as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel secure and also out of threat' is at the second degree of demands. Before a worker can be made to establish mentally, he needs to have his 'Physical 'and 'Safety' needs fulfilled.

SWOT Analysis for Business Family Dynamics Case Study



Implication of Analysis.

The OB analysis has actually considered numerous theories to understand just how to deal with the existing scenario available. The following 3 alternatives have been suggested to help Lewis manage the organizational obstacles in the advertising and marketing department. Each of these choices has been recommended for easing the shift needed to bring the advertising department in accordance with the requirements of the marketplace as well as for making the social modification that would comply with once the current leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production features. Combination of Advertising with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has expertise in business-to-business marketing along with firm and also retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both advertising as well as marketing features.

The benefit of this method is that it will integrate the two features while reducing the demand for hiring an additional resource for advertising and marketing. Lewis would be heading the marketing division and in any kind of case her replacement would certainly be needed for the existing duty that she is carrying out. The drawback of this alternative is that outside hiring may produce resentment from inner employees that may be looking at the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Production: Given the competitive stress and top quality job called for from the ad agency, it is advised that Lewis needs to permit the manufacturing device to be a different feature from the marketing unit. Considering that many advertising agencies had these two functions as separate systems, it makes more sense to comply with the norm. Both features may be able to focus on their core turns on much more successfully. The negative aspect of this approach would certainly be that added prices would certainly have to be borne for establishing up separate production features. Along with this, a manufacturing head may have to be worked with which can boost overheads for the organization.

Integration of Marketing with Operations: Considering that Lewis is already dealing with the advertising and also procedures divisions concurrently; it makes sense to incorporate the two functions given that she has been efficiently taking care of both ends. The reality that both departments already have significant differences over allocation of resources recommends that this combination may have the ability to cause harmony specifically as Lewis would be heading both ends.However there are numerous negative aspects of this relocation particularly as it would place excessive burden over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring design for the advertising and marketing division recommends that these 2 departments would certainly be culturally diverse. Lewis may not be able to apply one kind of management style to both departments which could result in inefficiency in either one of the 2 functions.

Referral.



An analysis of the 3 alternatives suggests that integration of marketing and procedures would not be a practical action due to the large differences between the two divisions despite the fact that currently Lewis is taking care of both. While separation of the production function might have been a beneficial step for the advertising department, the truth that it would indicate putting a third function under Lewis's wing suggests this should be prevented too. The integration of the advertising division is the very best alternative in terms of getting the optimal results from the department. An action plan for this choice is gone over listed below.

Action Plan.
Recommendation
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing function will certainly stay component of advertising under advertising function.

Lewis will certainly separate herself from procedures.

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

Open door plan and also focus on cross department interaction will certainly be aimed at getting rid of disharmony.

Contingency strategy.

If the combination does not work out as prepared, a backup plan would certainly adhere to which would certainly separate the manufacturing feature from the advertising feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will certainly be divided by putting it under an SVP manufacturing.