Activity Based Management At Ws Industries A Case Study Solution


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Activity Based Management At Ws Industries A Case Study Solution

Background and Facts

Activity Based Management At Ws Industries A a workplace supplies seller for tiny as well as medium sized organisations has actually lately been involved in planning for a merger with its rival Residence Deport, which has influenced efficiency degrees in departmentswith the elderly supervisor involved in lawful issues put forth by the government Profession Commission. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With obstacles in the kind of a possible social modification and also low worker morale, the company requires a total reengineering effort at the advertising and marketing department.

Trouble Declaration

The potential cultural change at the marketing division of Activity Based Management At Ws Industries A is raising uncertainty in the working environment causing various obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting critical choices given that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Payment's intervention while doing so. Given the reality that the shop has a worldwide existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may have the ability to influence efficiency or tactical goals. Federal Trade Compensation's antitrust match versus the merging occupied valuable time of the company's elderly monitoring recommending that 'political' factors can have significant ramifications for a worldwide business.

Economic Factors: Economic factors such as the emergence of small businesses in the international circumstance suggest that Activity Based Management At Ws Industries A is flourishing in an environment where there is potential growth of services. Along with this, truth that store clients are primarily seeking office products for home offices recommends that the marketplace has an increasing trend of business owners and also home organisations.

Social factors: Social trends in the economic climate show that clients are searching for convenience along with appealing costs. Marketing research shows how the client for Activity Based Management At Ws Industries A does not have recognition about locating remedies which can offer a mix of comfort and affordable.

Technical factors: Technology plays a crucial duty in Activity Based Management At Ws Industries A's service strategy especially as the organization is piloting Innovation facilities which would offer innovation sales and also assistance in the type of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Behavior issues can be seen in Activity Based Management At Ws Industries A's case as highlighted in this section.

Apprehensions regarding cultural modification: There is uneasiness about a social modification that would certainly occur as soon as Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the team member already showing unhappiness over this possible step. This anticipated adjustment has produced anxiety in the work environment which has been combined with the previous stress of preparing the company for a prospective merging with Residence Deport.

Difficult Job Setting for Newcomers: There is lack of workers that can match the demanding atmosphere of a busy organization. Not only does this result in trouble in finding the right individuals, it places tension on new hires as can not stand up to the rate and pressure that the company expects them to bear.

Dual Reporting Lines: Newbies find this organizational culture difficult and also hard to deal with especially as dotted line relationships are suggested to be weak as a whole and also unbiased setting and also efficiency examination is still done by the strong line supervisor. This implies that novices might shed quality concerning their particular functions and purposes especially as populated line reporting does not maintain them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had been guessed that the latter would take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified as well as suitable for the work however the fact that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Job Insecurity: Concern as well as instability can be identified as two significant worries that Lewis would be taking care of particularly as the merger has now be cancelled as well as 2 senior executives of the advertising and marketing department would be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would not just be in charge of brining concerning a cultural modification but would certainly likewise need to prove herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design and also its conflict with the marketing department's function can likewise be viewed as an OB difficulty specifically as she has been used to taking care of concerns in the operations department where employees are instructed to concentrate on processes and obtain them right. The advertising department on the other hand can be viewed as a group of people who are made use of to being nurtured by Krasnow that concentrated extra on outcome than processes.

Interdepartmental Differences: Interdepartmental disputes between three departments, advertising, merchandizing and procedures respectively over the appropriation of the advertising and marketing mix can be identified as an additional OB worry. The advertising division does not share the exact same vision as the various other two divisions relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix appropriation amongst one an additional either.

Fragmentation in Marketing Division: Disintegration in between the marketing and advertising departments can be identified as another OB concern which might need further focus. The fact that the advertising and marketing sections in the marketing division are detached is stopping both departments from obtaining from each various other's experience and also knowledge. Assimilation of advertising and marketing with retailing and also procedures would certainly become more difficult if the advertising and marketing department itself is degenerated which can be one more potential OB worry.

Activity Based Management At Ws Industries A Analysis

Various theories have actually been utilized to clarify the scenarios to get further quality about the circumstance available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that subordinates are easy and lazy, have little aspiration and stand up to change. The scenario at Activity Based Management At Ws Industries A is not entirely complying with Concept X, it can be seen that new hires are finding this setting rather difficult which might at some point lead to a better inclination of the administration towards Theory X. Even while assessing Lewis's administration design, concept X might have been suitable in the operations division to some degree however the Advertising division would certainly call for dependence on Concept Y in order to get the imagination and also creativity from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's worry about bringing harmony between the advertising and marketing department is concerned, this would at first cause clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the initial phase of team development, people may not bond, as they are active locating their place in the team. By incorporating the marketing and advertising division's work, there may be the same preliminary separate which could result in the 2nd stage of 'storming' where the teams test each other. It is only throughout the 3rd stage or 'norming' when they would certainly come together to share ideas prior to the group can bring about synergy in the fourth phase 'carrying out'.

Bridges' Shift Design: According To William Bridge's theory (appendix 4), individuals are quite uneasy with change, which is apparent by the scenario at Activity Based Management At Ws Industries A The scenario can be viewed as a regular training course of life if is examined according to Bridge's theory where he discusses that people go through three stages of change when they experience modification. 'End, shedding and Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When people exist with change, they go into stage one therefore there may be emotions like despair, unpredictability, irritation, rage, concern, rejection and disorientation.The circumstance at the marketing division of Activity Based Management At Ws Industries A is comparable so Lewis can obtain comfy with the idea that it is not remarkable habits. In the second phase, there might be a requirement to bridge the gap in between the new and old culture so Lewis might need to encounter this ordeal as soon as Krasnow leaves. There may be low morale as well as low efficiency at this phase which need to not be taken as a problem. It is during this phase that Lewis will need to provide guidance to the division to ensure that they can discover a sense of direction. It can be seen just how Krasnow has actually currently made this shift much easier by making Lewis obtain involved in the division a year prior to his actual separation. As per Bridges' Model, stage three will certainly produce visibility to learning, High energy and also commitment as individuals will embrace the modification (Bridges, 2004).

Maslow's Demand pecking order: The OB concern pertaining to instability at the work environment has actually been caused firstly by the change in administration and also secondly by the fact that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the significance of 'protection needs as being a lower level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel protected and also untouched' is at the 2nd degree of demands. Before an employee can be made to create psychologically, he requires to have his 'Physiological 'and 'Safety and security' needs satisfied. This shows that unless the workers are made to feel secure concerning their current work standing in Activity Based Management At Ws Industries A they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Activity Based Management At Ws Industries A Case Study

Ramification of Analysis.

The OB analysis has actually checked out numerous concepts to understand exactly how to handle the present situation handy. The adhering to 3 choices have actually been proposed to help Lewis handle the business obstacles in the marketing department. Each of these options has actually been proposed for alleviating the shift required to bring the advertising and marketing division according to the requirements of the market and also for making the cultural modification that would certainly comply with once the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and Production features. Integration of Advertising with Workflow.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing along with company as well as retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and advertising functions.

The benefit of this approach is that it will certainly integrate both functions while reducing the demand for employing an extra resource for advertising. Lewis would certainly be heading the advertising department as well as in any case her replacement would be needed for the existing function that she is carrying out. The downside of this option is that outside hiring may bring about resentment from internal personnel who might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Provided the affordable stress and also excellent quality job called for from the advertising agency, it is advised that Lewis ought to allow the manufacturing system to be a separate function from the marketing unit. Given that most ad agency had these two functions as different systems, it makes more sense to adhere to the norm. Both functions may be able to focus on their core triggers a lot more efficiently. The negative aspect of this approach would certainly be that extra costs would certainly have to be birthed for setting up separate manufacturing functions. In addition to this, a manufacturing head may have to be worked with which could raise overheads for the company.

Assimilation of Advertising with Workflows: Since Lewis is already taking treatment of the marketing and procedures divisions simultaneously; it makes feeling to integrate the 2 functions considering that she has actually been effectively taking care of both ends. The reality that Lewis has to adjust her monitoring design for the advertising and marketing department recommends that these two divisions would be culturally diverse.


An examination of the three options suggests that assimilation of marketing and also operations would certainly not be a practical move due to the huge differences between the 2 departments in spite of the truth that currently Lewis is handling both. While separation of the production function may have been a beneficial move for the marketing division, the truth that it would certainly suggest positioning a third function under Lewis's wing implies this ought to be prevented.

Action Strategy.

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

Advertising and Marketing features would certainly be combined.

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

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

Lewis will separate herself from procedures.

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

Open door plan as well as emphasis on cross departmental interaction will be targeted at removing dissonance.

Contingency strategy.

If the integration does not exercise as planned, a contingency strategy would certainly comply with which would divide the production function from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. Because case the manufacturing function will most definitely be separated by putting it under an SVP manufacturing.