Acid Rain The Southern Co A Case Study Solution


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Background and Facts

Acid Rain The Southern Co A an office supplies retailer for tiny as well as medium sized businesses has just recently been associated with planning for a merger with its rival House Deport, which has actually affected efficiency degrees in departmentswith the elderly manager involved in legal complications put forth by the federal Trade Compensation. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the near future. With challenges in the kind of a prospective social modification and low employee morale, the company is in need of a full reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Acid Rain The Southern Co A is enhancing uncertainty in the working environment bring about different difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting strategic decisions considering that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Payment's intervention in the process. Offered the fact that the shop has a global existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to influence efficiency or calculated objectives. Federal Trade Commission's antitrust fit against the merging took up valuable time of the organization's elderly monitoring suggesting that 'political' factors can have significant ramifications for a global organisation.

Economic Factors: Financial factors such as the introduction of small companies in the global scenario suggest that Acid Rain The Southern Co A is growing in a setting where there is potential growth of services. Truth that shop consumers are mostly looking for office materials for residence workplaces recommends that the market has a climbing trend of business owners as well as home based businesses.

Social factors: Social trends in the economic climate show that customers are seeking comfort along with eye-catching prices. Market research demonstrates how the client for Acid Rain The Southern Co A does not have understanding about finding options which can offer a combination of benefit and also affordable.

Technical factors: Technology plays a crucial role in Acid Rain The Southern Co A's service approach specifically as the organization is piloting Modern technology facilities which would offer modern technology sales as well as support in the type of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Several underlying Business Behavior problems can be seen in Acid Rain The Southern Co A's case as highlighted in this area.

Uneasiness regarding social change: There is apprehension concerning a cultural adjustment that would certainly happen as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the employee currently showing discontent over this potential step. This anticipated modification has created tension in the workplace which has actually been paired with the past anxiety of preparing the firm for a possible merging with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of workers that can match the difficult atmosphere of a fast-paced company. Not only does this lead to trouble in discovering the best individuals, it places tension on new hires as can not stand up to the rate and also pressure that the organization expects them to birth.

Twin Coverage Lines: Novices locate this business society cumbersome and also difficult to handle specifically as populated line partnerships are meant to be weak generally and also unbiased setting and also performance analysis is still done by the strong line manager. This means that newbies might lose quality regarding their corresponding duties and goals especially as dotted line coverage does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had been speculated that the last would take Krasnow's position came as a blow to her morale. Lewis might have been capable as well as appropriate for the work but the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Worry as well as instability can be determined as two significant concerns that Lewis would certainly be handling specifically as the merger has actually now be cancelled and also two senior execs of the advertising and marketing department would be leaving. The whole obligation of the division would be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural adjustment however would certainly likewise need to confirm herself in her brand-new duty.

Inappropriate Administration Style of Leader: Lewis's monitoring style and also its incompatibility with the advertising and marketing division's function can also be viewed as an OB challenge particularly as she has actually been used to taking care of concerns in the operations division where personnel are educated to concentrate on processes and also get them right. The advertising and marketing department on the other hand can be seen as a team of individuals who are used to being supported by Krasnow who focused extra on result than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing and also operations respectively over the allowance of the marketing mix can be determined as another OB problem. Although the advertising department does not share the exact same vision as the various other two divisions regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix appropriation among one another either.

Fragmentation in Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as one more OB problem which might need further interest. The truth that the advertising and marketing sections in the advertising department are disconnected is avoiding both departments from gaining from each various other's experience and also know-how. Integration of advertising with retailing as well as procedures would end up being harder if the advertising and marketing department itself is broken down which can be one more possible OB concern.

Acid Rain The Southern Co A Analysis

Numerous theories have actually been used to clarify the circumstances to get more quality concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are passive and lazy, have little passion and stand up to change. The difficult version of this concept highlighted threat, limited controls, hazards and also punishments. Gradually it produces low efficiency, refined sabotage and also competition (Offer, 2003). Although the situation at Acid Rain The Southern Co A is not completely complying with Theory X, it can be seen that new hires are locating this setting instead difficult which might at some point lead to a better disposition of the management in the direction of Theory X. Based on McGregor's supported view, which he called Theory Y, the important job of the management is to prepare organizational problems to ensure that individuals can attain their very own objectives best by routing their initiatives in the direction of business rewards. If individuals discover no fulfillment in their work, the administration would certainly have little choice yet to rely on concept X and exterior control (Offer, 2003). Also while analyzing Lewis's monitoring style, concept X may have been suitable in the procedures department somewhat however the Marketing division would require dependence on Theory Y so as to get the imagination and originality from the groups.

Tuckman's Teamwork Theory: As for Lewis's concern regarding bringing harmony between the advertising and marketing division is worried, this would originally lead to clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, throughout the preliminary phase of team advancement, people may not bond, as they are hectic discovering their place in the group. By incorporating the advertising and marketing division's job, there may coincide initial separate which could cause the second phase of 'storming' where the teams challenge each other. It is just during the 3rd phase or 'norming' when they would certainly come together to share concepts prior to the team can bring about synergy in the fourth phase 'executing'.

When people are presented with adjustment, they get in phase one and also so there might be feelings like sadness, unpredictability, aggravation, rage, worry, rejection and also disorientation.The scenario at the advertising department of Acid Rain The Southern Co A is comparable so Lewis can get comfy with the idea that it is not phenomenal actions. It is throughout this phase that Lewis will certainly have to offer support to the department so that they can locate a feeling of instructions. It can be seen how Krasnow has actually already made this change much easier by making Lewis obtain entailed in the department a year prior to his real separation.
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to insecurity at the workplace has been caused to start with by the modification in management as well as second of all by the fact that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the value of 'safety requires as being a reduced level requirement of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel safe and out of danger' goes to the 2nd degree of needs. Prior to an employee can be made to establish psychologically, he needs to have his 'Physical 'and 'Security' requires fulfilled. This suggests that unless the employees are made to really feel safe and secure concerning their current employment condition in Acid Rain The Southern Co A they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Acid Rain The Southern Co A Case Study

Ramification of Analysis.

The OB analysis has considered various concepts to recognize just how to handle the present situation handy. The adhering to three choices have actually been recommended to aid Lewis deal with the organizational challenges in the marketing division. Each of these alternatives has been recommended for reducing the change required to bring the marketing division in accordance with the requirements of the marketplace as well as for making the social change that would follow as soon as the current leader leaves.

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

Assessment of Alternatives.

Integration of Advertising & Advertising Functions: The internal advertising and marketing company of Acid Rain The Southern Co A is already toughness for the company in terms of saving up on expenses associated with marketing as well as promotion. Considering that no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising and marketing function, this is a positive opportunity for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business marketing together with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing functions.

The advantage of this technique is that it will incorporate the two features while decreasing the need for hiring an additional resource for advertising. In addition to this, Lewis would be heading the advertising department and in any case her replacement would be required for the present function that she is doing. The negative aspect of this option is that external hiring may cause animosity from internal employees who may be eying the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Offered the competitive stress and high top quality job needed from the advertising and marketing firm, it is advised that Lewis needs to enable the manufacturing unit to be a separate feature from the marketing unit. Given that most marketing firms had these two features as separate devices, it makes even more sense to comply with the standard.

Combination of Advertising with Operations: Considering that Lewis is currently taking care of the advertising and also procedures departments simultaneously; it makes feeling to integrate the two functions considering that she has been efficiently taking care of both ends. The truth that Lewis has to adjust her monitoring design for the marketing department suggests that these 2 divisions would certainly be culturally diverse.


An analysis of the three alternatives indicates that assimilation of marketing as well as procedures would certainly not be a viable relocation due to the substantial differences between both divisions despite the fact that presently Lewis is handling both. While separation of the manufacturing feature might have been a positive relocation for the advertising division, the reality that it would certainly suggest placing a 3rd function under Lewis's wing indicates this should be avoided. The assimilation of the advertising and marketing department is the best alternative in terms of getting the ideal results from the department. An action plan for this option is reviewed below.

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

Advertising and Marketing features would be merged.

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

Manufacturing feature will certainly stay component of marketing under marketing feature.

Lewis will separate herself from procedures.

A democratic management style with employee empowerment will certainly be made use of in marketing department.

Open up door plan and also focus on cross departmental interaction will certainly be aimed at getting rid of discord.

Backup plan.

If the assimilation does not work out as prepared, a contingency plan would follow which would separate the manufacturing feature from the marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. Because case the production function will most definitely be separated by putting it under an SVP manufacturing.