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2500 Case Study Solution

Background and Facts

2500 an office supplies merchant for tiny and average sized services has actually recently been involved in preparing for a merger with its competitor House Deport, which has actually influenced efficiency levels in departmentswith the senior manager involved in legal issues presented by the government Trade Compensation. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With challenges in the type of a possible cultural change and reduced staff member morale, the organization requires a complete reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising division of 2500 is raising uncertainty in the working environment causing different challenges for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing critical choices since Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's treatment in the process. Given the reality that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries may have the ability to influence efficiency or strategic objectives. Federal Profession Payment's antitrust fit versus the merger used up important time of the organization's senior management suggesting that 'political' factors can have serious implications for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide scenario suggest that 2500 is flourishing in a setting where there is possible development of organisations. Truth that shop consumers are primarily looking for office supplies for residence offices recommends that the market has a rising trend of entrepreneurs and also home based businesses.

Social factors: Social fads in the economic situation show that customers are looking for convenience as well as eye-catching prices. Marketing research demonstrates how the customer for 2500 does not have understanding about finding services which can offer a mix of ease as well as inexpensive.

Technical factors: Innovation plays a crucial role in 2500's service strategy specifically as the company is piloting Innovation centers which would certainly provide innovation sales and assistance in the form of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Behavior problems can be seen in 2500's case as highlighted in this section.

Concerns concerning social modification: There is apprehension about a social change that would happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with most of the staff members already showing discontent over this possible step. This expected modification has actually produced stress in the work environment which has been paired with the previous stress and anxiety of preparing the firm for a possible merging with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the difficult atmosphere of a hectic company. Not only does this cause trouble in locating the appropriate individuals, it puts stress and anxiety on brand-new hires as can not endure the pace as well as stress that the organization expects them to birth.

Twin Coverage Lines: Newbies find this business culture difficult and also tough to manage especially as dotted line connections are suggested to be weaker generally and objective setting and also performance analysis is still done by the solid line supervisor. This implies that newbies could shed quality regarding their respective functions and purposes specifically as populated line coverage does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been speculated that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been capable and also suitable for the task but the reality that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Fear and insecurity can be recognized as 2 major concerns that Lewis would be taking care of especially as the merging has actually now be cancelled and also 2 senior execs of the advertising division would certainly be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining concerning a social change yet would additionally need to confirm herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's management style and its conflict with the advertising department's function can likewise be seen as an OB challenge specifically as she has actually been used to taking care of concerns in the procedures department where workers are educated to concentrate on processes and obtain them. The advertising division on the various other hand can be viewed as a team of people that are utilized to being supported by Krasnow who focused a lot more on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and operations specifically over the allotment of the advertising mix can be determined as another OB issue. Although the marketing department does not share the same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not agree over the marketing mix appropriation amongst one another either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing departments can be determined as an additional OB concern which could require further attention. The truth that the advertising and marketing sections in the advertising division are disconnected is protecting against both divisions from acquiring from each various other's experience as well as competence. Combination of advertising with retailing and procedures would end up being more difficult if the advertising and marketing department itself is disintegrated which can be one more prospective OB worry.

2500 Analysis

Numerous concepts have been used to explain the scenarios to get additional quality regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that juniors are passive and careless, have little passion as well as withstand modification. The circumstance at 2500 is not entirely adhering to Concept X, it can be seen that brand-new hires are finding this setting rather demanding which might ultimately lead to a greater disposition of the monitoring in the direction of Theory X. Even while assessing Lewis's management design, concept X might have been suitable in the procedures division to some degree yet the Advertising division would certainly require reliance on Concept Y in order to get the creativity and creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's concern about bringing consistency in between the advertising and marketing department is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the initial phase of group development, individuals may not bond, as they are busy locating their location in the team. By integrating the advertising and marketing division's job, there may be the same first detach which can bring about the 2nd phase of 'storming' where the teams challenge each other. Nonetheless, it is only throughout the third stage or 'norming' when they would come together to share ideas before the group can bring about harmony in the fourth phase 'executing'.

When people are presented with change, they enter stage one and so there might be emotions like unhappiness, uncertainty, stress, temper, worry, rejection and also disorientation.The scenario at the advertising department of 2500 is comparable so Lewis can get comfy with the idea that it is not remarkable behavior. It is throughout this stage that Lewis will have to offer assistance to the department so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this transition simpler by making Lewis obtain involved in the department a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the relevance of 'safety requires as being a lower degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel secure and also out of danger' is at the second degree of demands. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physical 'as well as 'Safety and security' requires met.

SWOT Analysis for 2500 Case Study



Effects of Analysis.

The OB analysis has checked out different concepts to comprehend exactly how to handle the present circumstance handy. The adhering to three alternatives have been proposed to help Lewis take care of the business obstacles in the marketing department. Each of these options has been suggested for relieving the change required to bring the marketing division according to the requirements of the marketplace and for making the social change that would adhere to once the present leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Manufacturing features. Integration of Marketing with Operations.

Examination of Alternatives.

Combination of Advertising & Advertising Functions: The internal marketing firm of 2500 is already strength for the organization in terms of saving up on expenses associated with advertising and marketing and promotion. Given that no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising and marketing feature, this is a positive opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business advertising together with company and retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The advantage of this method is that it will incorporate both features while decreasing the need for employing an additional source for advertising. Lewis would be heading the advertising and marketing division and also in any type of case her replacement would certainly be needed for the present function that she is carrying out. The downside of this alternative is that exterior hiring may cause resentment from internal personnel who might be considering the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Given the affordable pressures and high quality work required from the advertising agency, it is advised that Lewis ought to allow the production system to be a separate function from the advertising and marketing unit. Given that a lot of advertising agencies had these two functions as different units, it makes even more sense to comply with the norm. In addition to this, both functions may be able to concentrate on their core activates more effectively. The downside of this strategy would certainly be that extra prices would have to be borne for establishing up separate manufacturing functions. A manufacturing head might have to be employed which can increase overheads for the company.

Integration of Advertising with Operations: Given that Lewis is already dealing with the advertising as well as operations departments concurrently; it makes sense to integrate both functions because she has been effectively caring for both ends. The reality that the two divisions currently have major differences over allotment of sources suggests that this combination might be able to bring about harmony specifically as Lewis would be heading both ends.However there are different drawbacks of this step particularly as it would place too much concern over Lewis's shoulders. The fact that Lewis needs to adjust her management design for the advertising department recommends that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one kind of leadership design to both departments which might result in inadequacy in either one of the two functions.

Recommendation.



An examination of the three options shows that assimilation of advertising and also operations would certainly not be a practical action due to the substantial differences in between the two divisions although that presently Lewis is handling both. While splitting up of the manufacturing feature might have been a positive relocation for the advertising and marketing department, the fact that it would imply putting a 3rd function under Lewis's wing indicates this ought to be stayed clear of. The assimilation of the advertising division is the most effective option in regards to obtaining the ideal results from the department. An activity plan for this option is talked about listed below.

Action Plan.
Recommendation
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production function will certainly continue to be component of advertising and marketing under advertising feature.

Lewis will divide herself from operations.

An autonomous leadership design with employee empowerment will certainly be made use of in marketing division.

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

Contingency strategy.

If the integration does not work out as prepared, a backup strategy would certainly comply with which would certainly separate the manufacturing feature from the marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will definitely be separated by positioning it under an SVP manufacturing.