Hambrecht Quist Case Study Analysis


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Hambrecht Quist Case Study Solution

Background and Facts

Hambrecht Quist an office materials store for small as well as medium sized businesses has recently been associated with planning for a merger with its competitor Home Deport, which has actually impacted effectiveness levels in departmentswith the elderly manager involved in legal difficulties put forth by the federal Profession Payment. With the Marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the future. With difficulties in the form of a possible social modification and also low staff member morale, the organization wants a complete reengineering initiative at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising and marketing division of Hambrecht Quist is enhancing uncertainty in the working environment bring about different difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical decisions because Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Payment's intervention at the same time. Offered the fact that the store has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might have the ability to influence performance or critical objectives. Federal Trade Compensation's antitrust match against the merging occupied valuable time of the company's senior administration recommending that 'political' factors can have significant effects for a worldwide service.

Economic Factors: Economic factors such as the development of small businesses in the global scenario recommend that Hambrecht Quist is prospering in a setting where there is prospective growth of organisations. Reality that shop clients are mainly looking for workplace supplies for residence offices recommends that the market has an increasing trend of entrepreneurs and house based services.

Social factors: Social patterns in the economic climate show that consumers are trying to find convenience along with appealing prices. Market research shows how the client for Hambrecht Quist lacks understanding about locating options which can supply a combination of ease and also low costs.

Technological factors: Modern technology plays a crucial role in Hambrecht Quist's business approach specifically as the company is piloting Technology centers which would certainly provide technology sales and also support in the type of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Habits concerns can be seen in Hambrecht Quist's case as highlighted in this area.

Concerns about social adjustment: There is concern about a social modification that would happen when Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with the majority of the team member currently showing unhappiness over this prospective step. This anticipated change has developed stress and anxiety in the workplace which has been combined with the previous anxiety of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the stressful environment of a hectic organization. Not only does this bring about difficulty in locating the right people, it places anxiety on brand-new hires as can not hold up against the speed and pressure that the organization expects them to birth.

Twin Coverage Lines: Beginners discover this organizational society cumbersome as well as difficult to manage specifically as populated line relationships are implied to be weaker generally and unbiased setting and performance analysis is still done by the solid line supervisor. This indicates that beginners can lose quality regarding their corresponding functions as well as purposes particularly as populated line reporting does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been capable as well as appropriate for the work however the reality that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Instability: Worry and also insecurity can be recognized as 2 significant worries that Lewis would be dealing with especially as the merging has actually currently be terminated as well as two senior executives of the advertising division would be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would certainly not just be in charge of brining about a cultural modification but would likewise need to confirm herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's management style and its conflict with the marketing department's duty can likewise be seen as an OB obstacle particularly as she has been utilized to handling issues in the procedures division where employees are educated to focus on procedures and also obtain them right. The marketing division on the various other hand can be seen as a group of individuals that are used to being nurtured by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Arguments: Interdepartmental differences between 3 departments, advertising, merchandizing and also operations respectively over the appropriation of the advertising and marketing mix can be identified as one more OB problem. Although the 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 as well as procedures departments do not concur over the marketing mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be determined as another OB concern which could require additional interest. The fact that the marketing and advertising sections in the advertising and marketing department are detached is preventing both departments from gaining from each various other's experience as well as competence. Integration of advertising and marketing with merchandising and operations would certainly end up being more difficult if the marketing division itself is broken down which can be an additional potential OB problem.

Hambrecht Quist Analysis

Different theories have been utilized to discuss the situations to get additional clearness about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that staffs are easy and careless, have little aspiration and stand up to adjustment. The hard variation of this concept highlighted browbeating, tight controls, risks and penalties. In time it produces reduced efficiency, refined sabotage as well as rivalry (Offer, 2003). Although the situation at Hambrecht Quist is not entirely complying with Concept X, it can be seen that new hires are discovering this environment instead demanding which may ultimately cause a better disposition of the monitoring towards Theory X. Based on McGregor's advocated view, which he called Concept Y, the important job of the administration is to prepare business conditions to ensure that people can accomplish their own goals best by guiding their efforts in the direction of business rewards. If individuals discover no complete satisfaction in their work, the monitoring would have little option however to depend on concept X and also exterior control (Deal, 2003). Also while analyzing Lewis's management design, concept X may have been suitable in the procedures division to some extent however the Advertising and marketing department would certainly require reliance on Concept Y so as to get the imagination as well as creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's issue about bringing harmony in between the marketing and also advertising and marketing department is worried, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and also advertising division's job, there might be the very same preliminary disconnect which might lead to the second phase of 'storming' where the teams test one an additional.

When individuals are offered with adjustment, they enter phase one and so there might be emotions like unhappiness, uncertainty, irritation, temper, worry, rejection as well as disorientation.The scenario at the advertising and marketing department of Hambrecht Quist is similar so Lewis can get comfy with the suggestion that it is not extraordinary behavior. It is throughout this stage that Lewis will have to provide advice to the department so that they can find a feeling of direction. It can be seen how Krasnow has actually currently made this transition less complicated by making Lewis obtain involved in the department a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'protection requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel safe and secure and also out of threat' is at the second degree of needs. Prior to a worker can be made to establish emotionally, he requires to have his 'Physical 'and 'Security' needs fulfilled.

SWOT Analysis for Hambrecht Quist Case Study

Effects of Analysis.

The OB analysis has considered various concepts to comprehend just how to manage the current scenario at hand. The complying with 3 alternatives have actually been suggested to assist Lewis deal with the organizational obstacles in the advertising department. Each of these options has actually been recommended for easing the change needed to bring the advertising and marketing division in line with the demands of the marketplace as well as for making the social modification that would certainly adhere to as soon as the current leader leaves.

Integration of advertising and marketing features. Separating Adverting and Production features. Integration of Marketing with Operations.

Evaluation of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house advertising and marketing firm of Hambrecht Quist is already strength for the organization in terms of conserving up on expenses connected to advertising and also promo. Considering that no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising feature, this is a favorable possibility for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business marketing along with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this technique is that it will certainly integrate the two functions while minimizing the demand for hiring an extra resource for marketing. Along with this, Lewis would certainly be heading the advertising and marketing department as well as in any case her replacement would be required for the present duty that she is doing. The negative aspect of this option is that outside hiring may cause animosity from interior personnel who may be considering the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the affordable stress as well as high top quality work required from the advertising firm, it is suggested that Lewis needs to enable the manufacturing system to be a separate feature from the advertising and marketing system. Considering that the majority of marketing companies had these 2 features as separate devices, it makes even more feeling to adhere to the norm.

Integration of Marketing with Workflows: Since Lewis is already taking treatment of the advertising and also procedures divisions simultaneously; it makes feeling to incorporate the two functions considering that she has been efficiently taking care of both ends. The fact that Lewis has to adapt her administration design for the advertising and marketing division recommends that these two divisions would certainly be culturally diverse.


An examination of the 3 options indicates that assimilation of advertising and also procedures would not be a practical move because of the substantial differences in between the two departments although that currently Lewis is handling both. While splitting up of the manufacturing function might have been a favorable move for the advertising and marketing division, the reality that it would certainly mean putting a 3rd function under Lewis's wing indicates this must be stayed clear of as well. The integration of the marketing department is the very best choice in terms of getting the ideal results from the department. An activity prepare for this choice is gone over listed below.

Action Strategy.
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will separate herself from operations.

A democratic leadership style with worker empowerment will certainly be made use of in marketing department.

Open up door policy and emphasis on cross department communication will certainly be focused on removing disharmony.

Contingency strategy.

If the integration does not work out as intended, a contingency strategy would certainly comply with which would certainly divide the production feature from the advertising and marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing feature will most definitely be divided by putting it under an SVP manufacturing.