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What Strategy Can Do For Technology Case Study Analysis

CASE SOLUTION

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What Strategy Can Do For Technology Case Study Solution

Background and Facts

What Strategy Can Do For Technology an office materials retailer for little and moderate sized businesses has actually lately been associated with planning for a merger with its competitor Residence Deport, which has actually affected efficiency levels in departmentswith the elderly supervisor associated with legal problems put forth by the government Trade Payment. With the Advertising and marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With difficulties in the kind of a potential cultural modification and also reduced worker spirits, the organization is in need of a complete reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing department of What Strategy Can Do For Technology is enhancing unpredictability in the workplace bring about numerous obstacles 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 role in affecting tactical choices given that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Compensation's treatment at the same time. Offered the reality that the shop has a global visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to influence efficiency or calculated goals. Federal Profession Payment's antitrust suit versus the merging used up useful time of the organization's elderly administration recommending that 'political' factors can have severe ramifications for an international organisation.

Economic Factors: Economic factors such as the development of small companies in the worldwide situation suggest that What Strategy Can Do For Technology is prospering in a setting where there is possible growth of services. In addition to this, reality that shop customers are mainly trying to find office supplies for home offices suggests that the marketplace has a climbing pattern of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economic climate show that clients are trying to find ease in addition to eye-catching costs. Marketing research shows how the consumer for What Strategy Can Do For Technology lacks understanding regarding finding solutions which can offer a mix of ease and also inexpensive.

Technological factors: Technology plays an important role in What Strategy Can Do For Technology's company technique particularly as the company is piloting Modern technology facilities which would certainly provide modern technology sales and support in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Behavior issues can be seen in What Strategy Can Do For Technology's case as highlighted in this area.

Apprehensions regarding cultural adjustment: There is uneasiness concerning a cultural modification that would happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the staff members currently showing discontent over this potential action. This expected change has actually developed tension in the office which has been combined with the past anxiety of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is lack of personnel that can match the difficult environment of a busy company. Not just does this result in problem in locating the best individuals, it places stress on new hires as can not hold up against the speed and stress that the organization expects them to birth.

Double Coverage Lines: Newcomers discover this organizational society cumbersome as well as challenging to handle especially as dotted line partnerships are indicated to be weak in general as well as objective setting and performance evaluation is still done by the strong line manager. This means that newcomers could shed clearness regarding their corresponding duties and purposes especially as populated line coverage does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis might have been qualified and appropriate for the work however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Worry & Job Instability: Fear and insecurity can be determined as 2 significant concerns that Lewis would be managing specifically as the merging has currently be terminated and also 2 senior executives of the marketing department would certainly be leaving. The whole responsibility of the department would certainly be falling on Lewis's shoulders who would not simply be in charge of brining regarding a social modification however would additionally have to verify herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's management design as well as its incompatibility with the advertising division's duty can additionally be seen as an OB obstacle specifically as she has actually been used to dealing with issues in the procedures department where employees are instructed to focus on procedures and also get them. The marketing division on the various other hand can be viewed as a group of people that are used to being supported by Krasnow who focused extra on outcome than procedures.

Interdepartmental Disputes: Interdepartmental differences between three divisions, marketing, merchandizing and operations specifically over the allocation of the advertising mix can be identified as one more OB worry. The marketing department does not share the same vision as the other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not concur over the advertising and marketing mix allocation amongst one an additional either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as an additional OB concern which could need more interest. The fact that the advertising and marketing sections in the marketing division are disconnected is protecting against both divisions from gaining from each other's experience and knowledge. Combination of advertising and marketing with merchandising and procedures would certainly come to be harder if the advertising division itself is broken down which can be another possible OB issue.

What Strategy Can Do For Technology Analysis

Different concepts have been used to describe the situations to get additional clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are easy and lazy, have little aspiration and stand up to modification. The situation at What Strategy Can Do For Technology is not totally following Theory X, it can be seen that new hires are finding this atmosphere instead difficult which may at some point lead to a better inclination of the monitoring towards Theory X. Also while examining Lewis's monitoring style, concept X may have been ideal in the procedures department to some level yet the Marketing department would certainly call for dependence on Theory Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing consistency in between the marketing and also marketing division is worried, this would at first lead to clash as gone over by Bruce Tuckman in his 'Team effort Theory'. By incorporating the marketing as well as marketing department's work, there might be the very same initial separate which can lead to the 2nd phase of 'storming' where the teams challenge one another.

Bridges' Change Design: According To William Bridge's theory (appendix 4), people are rather unpleasant with adjustment, which is apparent by the scenario at What Strategy Can Do For Technology The scenario can be viewed as a regular course of life if is examined as per Bridge's theory where he discusses that individuals go through 3 phases of change when they experience change. 'Ending, losing as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they get in stage one and so there may be emotions like unhappiness, uncertainty, irritation, rage, worry, rejection and disorientation.The situation at the advertising and marketing division of What Strategy Can Do For Technology is similar so Lewis can get comfortable with the idea that it is not phenomenal actions. In the 2nd stage, there might be a requirement to bridge the space between the brand-new and old society so Lewis may need to face this ordeal as soon as Krasnow leaves. There may be reduced morale and low productivity at this stage which must not be taken as a problem. It is throughout this phase that Lewis will certainly have to give assistance to the division to ensure that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this transition less complicated by making Lewis obtain involved in the division a year before his actual separation. As per Bridges' Model, phase 3 will cause openness to learning, High power and also commitment as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the value of 'safety and security needs as being a lower level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and secure and out of risk' is at the second level of requirements. Before a worker can be made to establish emotionally, he requires to have his 'Physiological 'and also 'Security' requires satisfied.

SWOT Analysis for What Strategy Can Do For Technology Case Study



Ramification of Analysis.

The OB analysis has checked out different concepts to recognize just how to handle the current scenario handy. The adhering to three alternatives have actually been recommended to help Lewis manage the business difficulties in the advertising division. Each of these alternatives has actually been suggested for alleviating the transition needed to bring the advertising and marketing department according to the requirements of the market as well as for making the cultural modification that would follow once the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Production features. Integration of Advertising And Marketing with Operations.

Examination of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house marketing agency of What Strategy Can Do For Technology is currently strength for the company in terms of saving up on overheads associated with advertising as well as promo. Given that no new employment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising and marketing feature, this is a beneficial possibility for integrating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing together with firm and also retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both marketing and advertising features.

The benefit of this technique is that it will certainly incorporate both functions while reducing the requirement for working with an added resource for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising division and also in any case her replacement would certainly be needed for the current role that she is performing. The downside of this choice is that external hiring may produce animosity from interior workers who might be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Provided the competitive stress as well as high quality work needed from the ad agency, it is suggested that Lewis ought to permit the production system to be a separate function from the advertising and marketing system. Since the majority of advertising agencies had these 2 features as different devices, it makes even more feeling to adhere to the norm. Both features might be able to focus on their core activates much more successfully. The downside of this method would certainly be that added prices would certainly have to be borne for establishing up different manufacturing functions. A manufacturing head might have to be worked with which can boost overheads for the organization.

Combination of Advertising with Workflows: Because Lewis is already taking treatment of the advertising and also procedures departments simultaneously; it makes sense to integrate the 2 features given that she has actually been efficiently taking care of both ends. The reality that Lewis has to adjust her monitoring style for the advertising and marketing division suggests that these 2 divisions would be culturally varied.

Referral.



An assessment of the three choices shows that integration of advertising and marketing and operations would not be a feasible action due to the vast distinctions in between the 2 divisions despite the reality that presently Lewis is managing both. While splitting up of the manufacturing feature may have been a desirable step for the marketing division, the fact that it would imply placing a 3rd function under Lewis's wing means this ought to be stayed clear of.

Action Plan.
Recommendation
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will separate herself from procedures.

A democratic management design with staff member empowerment will certainly be made use of in marketing department.

Open up door policy as well as focus on cross departmental interaction will be focused on getting rid of discord.

Backup plan.

If the assimilation does not exercise as prepared, a backup strategy would adhere to which would certainly divide the manufacturing function from the advertising feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production function will certainly be divided by placing it under an SVP manufacturing.