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Accuflow Inc Case Study Analysis

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Background and Facts

Accuflow Inc a workplace supplies merchant for small and also medium sized organisations has actually recently been associated with planning for a merger with its competitor Residence Deport, which has influenced efficiency levels in departmentswith the senior supervisor involved in lawful problems put forth by the government Profession Payment. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With obstacles in the type of a possible social adjustment and reduced staff member spirits, the organization wants a total reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural change at the marketing division of Accuflow Inc is raising uncertainty in the working environment leading to different obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting tactical choices because Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Offered the truth that the shop has an international visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations may be able to affect efficiency or tactical objectives. Federal Profession Compensation's antitrust fit against the merger took up important time of the company's elderly management recommending that 'political' factors can have severe ramifications for an international service.

Economic Factors: Financial factors such as the introduction of local business in the global scenario recommend that Accuflow Inc is thriving in a setting where there is prospective development of companies. Reality that shop customers are primarily looking for workplace products for home offices recommends that the market has an increasing fad of business owners and house based businesses.

Social factors: Social trends in the economic situation show that clients are searching for ease along with appealing costs. Marketing research shows how the consumer for Accuflow Inc does not have understanding regarding finding remedies which can supply a combination of benefit and also affordable.

Technological factors: Innovation plays an important role in Accuflow Inc's organisation technique especially as the company is piloting Innovation centers which would certainly supply modern technology sales and also assistance in the kind of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

A number of underlying Organizational Habits issues can be seen in Accuflow Inc's case as highlighted in this section.

Apprehensions about social adjustment: There is concern regarding a social change that would happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with a lot of the employee currently showing discontent over this potential move. This expected change has actually produced anxiety in the office which has been paired with the previous tension of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of employees that can match the difficult atmosphere of a hectic company. Not only does this result in problem in locating the appropriate individuals, it places anxiety on brand-new hires as can not hold up against the speed as well as stress that the organization anticipates them to bear.

Dual Reporting Lines: Newbies discover this business culture difficult and difficult to cope with especially as dotted line partnerships are indicated to be weak generally and unbiased setup as well as efficiency assessment is still done by the solid line supervisor. This implies that beginners might lose quality regarding their corresponding functions as well as goals specifically as populated line coverage does not maintain them in direct interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and ideal for the work however the fact that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Concern & Job Instability: Worry and insecurity can be recognized as two major problems that Lewis would be managing especially as the merging has currently be cancelled and two senior execs of the marketing department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would not just supervise of brining about a cultural modification yet would additionally have to verify herself in her new role.

Inappropriate Administration Design of Leader: Lewis's monitoring design as well as its conflict with the advertising and marketing department's function can likewise be seen as an OB difficulty specifically as she has been used to dealing with concerns in the operations department where employees are educated to focus on processes and also get them. The advertising and marketing department on the various other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow who concentrated more on outcome than processes.

Interdepartmental Differences: Interdepartmental differences in between three departments, advertising, merchandizing and operations respectively over the appropriation of the advertising mix can be recognized as one more OB issue. Although the advertising and marketing department does not share the very same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not concur over the marketing mix allowance amongst each other either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing divisions can be determined as another OB problem which can require further interest. The truth that the advertising and marketing sections in the marketing division are disconnected is avoiding both departments from gaining from each other's experience as well as knowledge. Assimilation of advertising with merchandising as well as operations would come to be more difficult if the marketing department itself is broken down which can be one more possible OB issue.

Accuflow Inc Analysis

Numerous concepts have been utilized to describe the scenarios to get additional quality about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are passive as well as lazy, have little aspiration as well as stand up to change. The difficult variation of this concept highlighted threat, limited controls, dangers and also penalties. Over time it produces low productivity, subtle sabotage and competition (Deal, 2003). The situation at Accuflow Inc is not completely following Theory X, it can be seen that new hires are discovering this atmosphere instead demanding which may eventually lead to a higher disposition of the monitoring in the direction of Theory X. As per McGregor's supported sight, which he called Theory Y, the essential task of the management is to set up organizational conditions to ensure that people can accomplish their own objectives best by directing their initiatives towards business incentives. If people find no contentment in their job, the management would certainly have little choice but to count on theory X and also external control (Offer, 2003). Even while examining Lewis's administration design, concept X may have appropriated in the procedures division somewhat however the Advertising department would require dependence on Concept Y in order to get the creativity and originality from the teams.

Tuckman's Team effort Concept: As much as Lewis's worry regarding bringing harmony in between the marketing and marketing department is worried, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising and advertising and marketing department's work, there might be the same initial separate which can lead to the second stage of 'storming' where the teams test one an additional.

Bridges' Shift Design: As per William Bridge's concept (appendix 4), individuals are fairly uneasy with modification, which is apparent by the situation at Accuflow Inc The situation can be viewed as a regular course of life if is researched based on Bridge's concept where he clarifies that people go through three phases of transition when they experience change. 'Ending, losing and Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with modification, they go into phase one and so there may be emotions like despair, uncertainty, aggravation, temper, concern, denial and also disorientation.The situation at the advertising and marketing department of Accuflow Inc is comparable so Lewis can get comfy with the concept that it is not extraordinary actions. In the second stage, there may be a requirement to connect the space in between the new and also old society so Lewis may need to face this challenge as soon as Krasnow leaves. There might be reduced morale and also low productivity at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will certainly have to give support to the division to make sure that they can discover a sense of direction. It can be seen how Krasnow has actually currently made this transition easier by making Lewis get involved in the department a year before his real departure. Based on Bridges' Version, phase 3 will certainly cause visibility to learning, High energy and also dedication as individuals will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the importance of 'security requires as being a reduced level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and secure and also out of danger' is at the second level of demands. Before a staff member can be made to establish mentally, he needs to have his 'Physiological 'and 'Security' needs met.

SWOT Analysis for Accuflow Inc Case Study



Effects of Analysis.

The OB analysis has actually considered numerous theories to recognize just how to cope with the present circumstance available. The adhering to three options have been proposed to aid Lewis take care of the business difficulties in the advertising department. Each of these choices has been suggested for alleviating the transition required to bring the advertising department according to the demands of the market and also for making the social adjustment that would certainly adhere to when the existing leader leaves.

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

Analysis of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising along with firm and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing as well as marketing functions.

The benefit of this strategy is that it will incorporate both functions while decreasing the requirement for employing an added source for advertising. Lewis would be heading the advertising division and in any type of case her replacement would certainly be needed for the existing duty that she is performing. The drawback of this choice is that external hiring might bring about animosity from inner personnel who might be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Provided the competitive stress as well as premium quality work called for from the advertising agency, it is suggested that Lewis should enable the production device to be a different feature from the marketing system. Because most ad agency had these two features as different systems, it makes more feeling to comply with the norm. Along with this, both features might have the ability to focus on their core activates extra effectively. The downside of this strategy would be that additional prices would have to be borne for setting up different manufacturing functions. In addition to this, a production head may need to be employed which can enhance overheads for the company.

Assimilation of Advertising with Workflows: Considering that Lewis is already taking care of the advertising as well as procedures divisions simultaneously; it makes sense to integrate both features because she has actually been successfully looking after both ends. The reality that both departments currently have major differences over appropriation of sources recommends that this assimilation may be able to produce consistency specifically as Lewis would be heading both ends.However there are numerous disadvantages of this step specifically as it would certainly place excessive burden over Lewis's shoulders. The truth that Lewis needs to adapt her administration style for the advertising department suggests that these two departments would certainly be culturally varied. In addition to this, Lewis might not have the ability to use one kind of leadership style to both divisions which could cause inadequacy in either one of the two functions.

Referral.



An analysis of the 3 choices shows that combination of marketing as well as procedures would certainly not be a practical action due to the huge distinctions in between the 2 departments despite the fact that presently Lewis is managing both. While separation of the production feature may have been a desirable relocation for the marketing department, the fact that it would certainly indicate positioning a third feature under Lewis's wing indicates this should be avoided.

Activity Strategy.
Recommendation
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production function will stay part of advertising and marketing under marketing function.

Lewis will certainly divide herself from operations.

A democratic leadership design with staff member empowerment will be used in marketing division.

Open door plan and focus on cross department communication will be aimed at getting rid of disharmony.

Contingency plan.

If the integration does not exercise as planned, a backup plan would follow which would certainly divide the manufacturing feature from the advertising function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing department without an SVP. Because case the production feature will absolutely be separated by positioning it under an SVP manufacturing.