Acid Rain The Southern Co B Case Study Solution


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Background and Facts

Acid Rain The Southern Co B an office supplies retailer for tiny as well as moderate sized organisations has lately been associated with preparing for a merging with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly supervisor involved in lawful problems presented by the government Trade Commission. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With difficulties in the type of a prospective social modification and reduced staff member morale, the company needs a full reengineering effort at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social change at the advertising department of Acid Rain The Southern Co B is boosting uncertainty in the working environment leading to different difficulties for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical choices since Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the fact that the shop has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations may have the ability to impact performance or calculated goals. Federal Trade Compensation's antitrust fit versus the merging occupied useful time of the company's senior administration suggesting that 'political' factors can have major effects for a global service.

Economic Factors: Economic factors such as the development of small companies in the global circumstance recommend that Acid Rain The Southern Co B is growing in an atmosphere where there is prospective development of organisations. Fact that shop customers are mostly looking for workplace products for house offices recommends that the market has a rising trend of business owners and also home based organisations.

Social factors: Social patterns in the economic climate reveal that consumers are seeking ease along with eye-catching costs. Marketing research shows how the client for Acid Rain The Southern Co B does not have understanding concerning discovering options which can provide a combination of comfort and low costs.

Technological factors: Modern technology plays an essential role in Acid Rain The Southern Co B's service technique especially as the organization is piloting Technology centers which would certainly supply innovation sales and also assistance in the kind of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Actions problems can be seen in Acid Rain The Southern Co B's case as highlighted in this area.

Concerns regarding cultural modification: There is concern regarding a cultural adjustment that would take place when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the staff members currently revealing unhappiness over this potential relocation. This anticipated modification has developed tension in the office which has been paired with the past stress of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is scarcity of personnel that can match the demanding setting of a fast-paced company. Not just does this result in problem in finding the appropriate people, it puts anxiety on brand-new hires as can not hold up against the speed and stress that the company anticipates them to birth.

Dual Reporting Lines: Newbies find this business society troublesome and tough to handle especially as dotted line relationships are indicated to be weak as a whole as well as objective setup and performance examination is still done by the strong line supervisor. This suggests that newbies might shed clearness about their corresponding duties as well as goals specifically as populated line reporting does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been capable as well as proper for the job however the fact that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Concern & Task Instability: Concern as well as instability can be determined as two major problems that Lewis would certainly be taking care of especially as the merging has actually now be terminated as well as two senior executives of the advertising and marketing department would certainly be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would certainly not just be in charge of brining about a social change but would certainly additionally have to prove herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's management design as well as its conflict with the marketing department's role can also be seen as an OB obstacle particularly as she has been utilized to taking care of concerns in the procedures department where workers are taught to focus on processes and also obtain them right. The advertising division on the various other hand can be seen as a team of people that are utilized to being nurtured by Krasnow that concentrated a lot more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, marketing, merchandizing as well as procedures respectively over the allocation of the advertising and marketing mix can be determined as an additional OB worry. The marketing division does not share the very same vision as the various other two divisions relating to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix allocation amongst one an additional either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing departments can be determined as an additional OB problem which might need further interest. The fact that the marketing and advertising areas in the advertising department are detached is preventing both divisions from getting from each various other's experience and also proficiency. Combination of advertising with retailing and procedures would end up being harder if the advertising division itself is degenerated which can be one more prospective OB problem.

Acid Rain The Southern Co B Analysis

Various concepts have actually been utilized to discuss the conditions to obtain further clarity about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are easy and also careless, have little passion and resist adjustment. The difficult version of this theory emphasized coercion, tight controls, dangers and also punishments. With time it produces low productivity, subtle sabotage and also rivalry (Offer, 2003). The situation at Acid Rain The Southern Co B is not totally complying with Concept X, it can be seen that new hires are discovering this setting rather difficult which might eventually lead to a higher disposition of the administration in the direction of Theory X. According to McGregor's supported view, which he called Theory Y, the necessary task of the monitoring is to organize business conditions so that people can achieve their very own objectives best by guiding their initiatives in the direction of business rewards. If individuals locate no satisfaction in their work, the administration would certainly have little option however to count on theory X and also outside control (Offer, 2003). Even while examining Lewis's monitoring style, concept X might have been suitable in the procedures division to some extent however the Advertising and marketing division would require reliance on Concept Y to get the imagination and also originality from the groups.

Tuckman's Synergy Concept: As much as Lewis's issue about bringing harmony between the marketing and also advertising division is worried, this would initially lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and marketing division's job, there might be the very same first detach which can lead to the 2nd phase of 'storming' where the teams challenge one another.

When people are provided with adjustment, they go into stage one and so there may be emotions like unhappiness, unpredictability, aggravation, rage, worry, rejection as well as disorientation.The situation at the advertising division of Acid Rain The Southern Co B is similar so Lewis can get comfy with the concept that it is not extraordinary actions. It is during this phase that Lewis will have to give assistance to the division so that they can find a feeling of instructions. It can be seen exactly how Krasnow has actually already made this shift simpler by making Lewis obtain entailed in the department a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the relevance of 'safety requires as being a lower degree need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe as well as out of threat' is at the second level of demands. Prior to a worker can be made to establish emotionally, he needs to have his 'Physical 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Acid Rain The Southern Co B Case Study

Implication of Analysis.

The OB analysis has actually considered various concepts to recognize how to cope with the current situation at hand. The complying with three choices have actually been recommended to aid Lewis take care of the organizational difficulties in the advertising department. Each of these options has been suggested for relieving the transition needed to bring the advertising and marketing department in line with the needs of the marketplace and also for making the cultural adjustment that would adhere to once the existing leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Production features. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has proficiency in business-to-business advertising along with firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The advantage of this approach is that it will integrate the two features while decreasing the need for working with an additional resource for advertising. Along with this, Lewis would be heading the advertising department and regardless her replacement would certainly be required for the existing function that she is performing. The drawback of this choice is that outside hiring might produce resentment from inner employees who might be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Provided the affordable stress and also high quality job called for from the ad agency, it is advised that Lewis should permit the manufacturing system to be a different function from the marketing unit. Because a lot of ad agency had these 2 features as different units, it makes even more sense to adhere to the standard. Along with this, both features might be able to focus on their core activates extra successfully. The downside of this strategy would certainly be that additional costs would have to be borne for setting up separate production functions. In addition to this, a production head may need to be hired which could increase overheads for the company.

Combination of Marketing with Procedures: Because Lewis is already taking treatment of the advertising and marketing and operations departments concurrently; it makes feeling to incorporate the 2 features since she has been effectively taking care of both ends. The fact that Lewis has to adjust her management style for the advertising and marketing department suggests that these 2 divisions would be culturally diverse.


An assessment of the three alternatives indicates that integration of marketing and also operations would not be a practical action due to the huge distinctions in between the 2 departments in spite of the fact that presently Lewis is handling both. While separation of the production feature might have been a desirable action for the advertising department, the fact that it would indicate putting a third feature under Lewis's wing means this must be prevented.

Activity Plan.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will certainly stay component of advertising under marketing function.

Lewis will certainly separate herself from procedures.

A democratic leadership design with staff member empowerment will certainly be utilized in advertising department.

Open up door plan as well as emphasis on cross department communication will be focused on eliminating disharmony.

Contingency plan.

If the assimilation does not work out as intended, a contingency strategy would certainly comply with which would divide the production function from the advertising and marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will certainly be separated by putting it under an SVP manufacturing.