Menu

Accounting For Frequent Fliers Case Study Analysis

CASE STUDY

Home >> Harvard >> Accounting For Frequent Fliers >>

Accounting For Frequent Fliers Case Study Analysis

Background and Facts

Accounting For Frequent Fliers a workplace materials store for little and also medium sized organisations has actually recently been associated with planning for a merger with its rival Residence Deport, which has impacted efficiency levels in departmentswith the senior manager involved in lawful problems put forth by the government Profession Commission. With the Advertising and marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With difficulties in the type of a prospective cultural modification as well as low staff member spirits, the organization requires a complete reengineering initiative at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Accounting For Frequent Fliers is raising unpredictability in the workplace resulting in numerous challenges 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 critical choices because Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment while doing so. Offered the truth that the shop has a global existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may be able to influence efficiency or calculated goals. Federal Trade Payment's antitrust match versus the merger took up beneficial time of the company's elderly administration suggesting that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Economic factors such as the appearance of small companies in the international scenario suggest that Accounting For Frequent Fliers is flourishing in an environment where there is potential growth of services. Along with this, reality that store clients are mainly trying to find workplace supplies for home offices suggests that the market has a climbing pattern of business owners and online services.

Social factors: Social fads in the economy reveal that clients are searching for ease in addition to appealing costs. Marketing research shows how the client for Accounting For Frequent Fliers lacks awareness regarding locating options which can offer a mix of convenience and also inexpensive.

Technological factors: Technology plays a crucial function in Accounting For Frequent Fliers's business technique specifically as the company is piloting Technology centers which would certainly supply technology sales as well as support in the kind of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Accounting For Frequent Fliers's case as highlighted in this area.

Uneasiness regarding social change: There is concern about a cultural adjustment that would take place as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the staff members already revealing unhappiness over this possible relocation. This predicted modification has actually created stress and anxiety in the office which has been combined with the past anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is lack of employees that can match the demanding environment of a hectic organization. Not only does this lead to problem in finding the ideal people, it puts stress and anxiety on new hires as can not stand up to the rate as well as pressure that the company anticipates them to bear.

Dual Reporting Lines: Newbies locate this organizational culture cumbersome and difficult to cope with particularly as dotted line connections are indicated to be weak as a whole as well as objective setting as well as efficiency examination is still done by the strong line supervisor. This suggests that newbies could shed clearness concerning their respective duties and also purposes particularly as dotted line reporting does not keep them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been speculated that the latter would take Krasnow's position came as an impact to her spirits. Lewis might have been capable and appropriate for the work yet the fact that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Job Insecurity: Worry as well as instability can be determined as 2 significant worries that Lewis would be taking care of especially as the merger has now be cancelled and 2 senior executives of the marketing department would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural adjustment but would additionally need to confirm herself in her new role.

Inappropriate Administration Design of Leader: Lewis's management design and also its conflict with the advertising and marketing division's duty can likewise be seen as an OB challenge specifically as she has actually been used to handling issues in the operations division where workers are instructed to focus on procedures and also obtain them. The marketing department on the other hand can be seen as a team of people who are utilized to being supported by Krasnow who concentrated much more on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes between three divisions, marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be recognized as another OB issue. Although the marketing division does not share the very same vision as the other 2 departments concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allotment among one another either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be determined as an additional OB issue which could need more attention. The truth that the advertising and marketing areas in the marketing department are separated is preventing both departments from getting from each other's experience and competence. Assimilation of marketing with retailing and also operations would certainly become more difficult if the advertising department itself is degenerated which can be one more possible OB worry.

Accounting For Frequent Fliers Analysis

Different theories have actually been utilized to describe the conditions to get additional quality about the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are easy and lazy, have little aspiration and withstand modification. The situation at Accounting For Frequent Fliers is not entirely complying with Theory X, it can be seen that new hires are finding this environment instead difficult which may at some point lead to a greater inclination of the management in the direction of Concept X. Also while evaluating Lewis's monitoring style, concept X might have been suitable in the procedures department to some extent however the Advertising and marketing department would call for reliance on Theory Y in order to get the creativity and originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem concerning bringing consistency between the advertising and marketing division is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the preliminary stage of team advancement, people might not bond, as they are hectic finding their area in the group. By incorporating the marketing and advertising division's work, there may coincide preliminary detach which might bring about the second stage of 'storming' where the groups challenge one another. It is just during the third stage or 'norming' when they would certainly come with each other to share concepts prior to the team can bring about harmony in the 4th stage 'performing'.

When people are provided with change, they get in phase one and also so there might be emotions like despair, unpredictability, frustration, rage, worry, rejection and also disorientation.The circumstance at the advertising division of Accounting For Frequent Fliers is comparable so Lewis can obtain comfy with the suggestion that it is not phenomenal actions. It is throughout this phase that Lewis will certainly have to provide advice to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this change less complicated by making Lewis get involved in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Need power structure: The OB concern pertaining to insecurity at the work environment has actually been activated firstly by the adjustment in monitoring and second of all by the truth that the merging will no longer be launched. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the importance of 'protection requires as being a reduced level demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel safe and secure and untouched' is at the second degree of needs. Before a staff member can be made to develop emotionally, he requires to have his 'Physical 'and also 'Security' requires satisfied. This shows that unless the personnel are made to feel secure concerning their existing work status in Accounting For Frequent Fliers they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Accounting For Frequent Fliers Case Study



Ramification of Analysis.

The OB analysis has actually looked at numerous theories to comprehend exactly how to cope with the current scenario available. The complying with three choices have been proposed to aid Lewis handle the organizational challenges in the advertising department. Each of these choices has been suggested for alleviating the change required to bring the advertising and marketing division according to the requirements of the market and for making the cultural modification that would certainly follow as soon as the current leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Manufacturing features. Combination of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business advertising along with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising and advertising functions.

The advantage of this method is that it will integrate both functions while reducing the demand for employing an extra resource for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing department and regardless her replacement would certainly be required for the current role that she is carrying out. The disadvantage of this alternative is that external hiring may cause bitterness from inner personnel that may be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Manufacturing: Given the affordable stress and high top quality work required from the advertising and marketing firm, it is recommended that Lewis ought to permit the manufacturing device to be a different feature from the advertising and marketing system. Given that the majority of marketing firms had these two features as different units, it makes more feeling to adhere to the standard.

Assimilation of Marketing with Operations: Since Lewis is already looking after the advertising and also procedures departments at the same time; it makes sense to incorporate the two features given that she has actually been efficiently taking care of both ends. The fact that the two divisions already have major differences over allocation of resources recommends that this integration might have the ability to cause consistency particularly as Lewis would be heading both ends.However there are various drawbacks of this action specifically as it would put way too much problem over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the advertising and marketing division suggests that these 2 departments would be culturally diverse. In addition to this, Lewis might not be able to apply one type of management design to both departments which could lead to inefficiency in either among the two functions.

Referral.



An evaluation of the three options indicates that assimilation of marketing as well as operations would not be a possible action due to the substantial differences in between the two departments although that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a beneficial step for the marketing division, the fact that it would certainly suggest placing a third feature under Lewis's wing indicates this ought to be avoided. The assimilation of the advertising department is the very best alternative in terms of getting the optimum arise from the department. An action prepare for this choice is discussed below.

Activity Plan.
Recommendation
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Production feature will certainly remain part of advertising under advertising and marketing function.

Lewis will divide herself from procedures.

A democratic management style with worker empowerment will be utilized in marketing division.

Open up door plan and also focus on cross departmental communication will be aimed at getting rid of dissonance.

Contingency strategy.

If the combination does not exercise as intended, a contingency strategy would comply with which would certainly separate the manufacturing function from the marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing function will most definitely be divided by placing it under an SVP production.