Hambrecht Quist Case Study Solution


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Hambrecht Quist Case Study Help

Background and Facts

Hambrecht Quist a workplace products store for small and also average sized businesses has actually lately been involved in planning for a merging with its competitor Home Deport, which has affected performance levels in departmentswith the senior manager associated with legal difficulties presented by the government Trade Payment. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With challenges in the type of a prospective social adjustment and low worker morale, the organization needs a complete reengineering effort at the advertising and marketing department.

Issue Declaration

The possible cultural change at the advertising division of Hambrecht Quist is increasing uncertainty in the working environment resulting in different difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing tactical choices since Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Payment's treatment while doing so. Given the fact that the shop has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations might have the ability to impact performance or strategic objectives. Federal Profession Commission's antitrust match versus the merger occupied valuable time of the organization's elderly administration recommending that 'political' factors can have serious effects for a global service.

Economic Factors: Financial factors such as the emergence of local business in the global situation recommend that Hambrecht Quist is thriving in an atmosphere where there is potential development of companies. Reality that store customers are mostly looking for office products for home workplaces suggests that the market has an increasing trend of business owners and home based services.

Social factors: Social patterns in the economic climate show that customers are looking for benefit as well as attractive costs. Market research demonstrates how the client for Hambrecht Quist lacks awareness regarding discovering options which can offer a combination of ease and also inexpensive.

Technological factors: Technology plays an important duty in Hambrecht Quist's service method especially as the company is piloting Technology facilities which would supply innovation sales as well as support in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Actions problems can be seen in Hambrecht Quist's case as highlighted in this section.

Worries about social adjustment: There is apprehension about a cultural modification that would certainly happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the team member already revealing discontent over this potential relocation. This expected adjustment has actually created tension in the workplace which has been combined with the previous stress of preparing the firm for a potential merger with Residence Deport.

Difficult Work Atmosphere for Newcomers: There is shortage of workers that can match the difficult atmosphere of a busy company. Not only does this result in trouble in finding the appropriate people, it places anxiety on new hires as can not endure the rate as well as pressure that the company expects them to bear.

Twin Reporting Lines: Newbies discover this business society troublesome and also difficult to deal with specifically as populated line partnerships are suggested to be weaker generally and also objective setup and efficiency examination is still done by the strong line supervisor. This indicates that novices might lose clearness about their respective roles and objectives specifically as dotted line coverage does not keep them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the last would certainly take Krasnow's position came as an impact to her morale. Lewis may have been capable as well as proper for the job but the fact that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Fear & Job Insecurity: Concern as well as insecurity can be identified as 2 major problems that Lewis would certainly be taking care of especially as the merger has currently be terminated and 2 elderly execs of the advertising and marketing division would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining concerning a cultural adjustment but would additionally have to prove herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's administration style and its conflict with the advertising and marketing division's role can additionally be viewed as an OB difficulty particularly as she has actually been made use of to taking care of concerns in the procedures department where workers are shown to focus on processes and also get them right. The marketing department on the other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow who concentrated extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between three departments, marketing, merchandizing and also procedures respectively over the allotment of the advertising mix can be determined as an additional OB concern. Although the advertising department does not share the very same vision as the other two departments relating to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not concur over the advertising and marketing mix allocation among one another either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing departments can be recognized as an additional OB problem which can require further interest. The reality that the marketing and advertising areas in the marketing department are detached is stopping both divisions from gaining from each other's experience and also proficiency. Combination of marketing with merchandising as well as operations would certainly become harder if the advertising department itself is disintegrated which can be another potential OB issue.

Hambrecht Quist Analysis

Different concepts have actually been made use of to clarify the situations to get further clearness concerning the situation available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and lazy, have little aspiration as well as stand up to modification. The situation at Hambrecht Quist is not completely following Concept X, it can be seen that brand-new hires are finding this setting rather difficult which may ultimately lead to a greater disposition of the administration in the direction of Concept X. Even while evaluating Lewis's management design, concept X might have been appropriate in the operations division to some extent but the Advertising division would certainly need reliance on Theory Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem about bringing harmony between the marketing as well as marketing department is worried, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing as well as advertising and marketing department's job, there may be the same initial separate which might lead to the 2nd stage of 'storming' where the teams test one another.

When people are offered with change, they enter phase one and so there might be feelings like unhappiness, unpredictability, irritation, rage, concern, denial and disorientation.The circumstance at the advertising division of Hambrecht Quist is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary actions. It is throughout this stage that Lewis will have to give advice to the division so that they can locate a feeling of direction. It can be seen how Krasnow has actually currently made this shift simpler by making Lewis obtain involved in the division a year before his actual departure.

Maslow's Need pecking order: The OB problem related to insecurity at the workplace has been set off to start with by the adjustment in monitoring as well as second of all by the reality that the merging will no more be launched. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the significance of 'safety and security needs as being a lower degree demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to really feel safe and secure and also untouched' is at the 2nd level of needs. Prior to a worker can be made to develop mentally, he requires to have his 'Physical 'and also 'Safety' requires met. This suggests that unless the employees are made to really feel safe and secure concerning their present work standing in Hambrecht Quist they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Hambrecht Quist Case Study

Ramification of Analysis.

The OB analysis has looked at various theories to recognize exactly how to manage the current situation available. The adhering to three options have actually been proposed to assist Lewis deal with the business challenges in the advertising and marketing division. Each of these options has actually been proposed for easing the transition needed to bring the marketing department in accordance with the requirements of the marketplace and also for making the cultural modification that would certainly comply with once the current leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Combination of Marketing with Operations.

Examination of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house marketing agency of Hambrecht Quist is currently toughness for the organization in regards to conserving up on overheads connected to advertising and also promotion. Given that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising function, this is a beneficial possibility for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing in addition to company and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and advertising functions.

The advantage of this method is that it will certainly integrate both features while reducing the need for hiring an additional resource for marketing. Lewis would be heading the advertising and marketing division and in any case her substitute would certainly be required for the present duty that she is performing. The downside of this choice is that outside hiring might produce bitterness from internal employees who might be considering the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the competitive pressures and also high quality work required from the marketing agency, it is suggested that Lewis must allow the production system to be a separate function from the advertising and marketing system. Given that most advertising companies had these 2 features as different devices, it makes even more sense to adhere to the norm.

Integration of Advertising And Marketing with Procedures: Since Lewis is already taking care of the advertising and marketing and procedures departments concurrently; it makes feeling to incorporate the two functions since she has actually been successfully taking care of both ends. The truth that Lewis has to adjust her monitoring design for the marketing department suggests that these two departments would certainly be culturally diverse.


An assessment of the three options suggests that assimilation of advertising and operations would certainly not be a practical move due to the vast distinctions between the 2 divisions regardless of the truth that presently Lewis is dealing with both. While separation of the manufacturing function might have been a favorable action for the marketing department, the reality that it would certainly suggest putting a third feature under Lewis's wing suggests this need to be stayed clear of.

Activity Plan.

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

Marketing and advertising functions would certainly be merged.

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

Production function will stay component of marketing under marketing feature.

Lewis will separate herself from procedures.

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

Open up door policy and also focus on cross departmental communication will certainly be aimed at removing dissonance.

Backup strategy.

If the assimilation does not exercise as planned, a backup strategy would adhere to which would separate the manufacturing function from the marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will certainly be separated by putting it under an SVP production.