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Aion Corp Case Study Help

Background and Facts

Aion Corp an office products retailer for small and medium sized companies has actually just recently been associated with planning for a merger with its rival House Deport, which has impacted performance levels in departmentswith the elderly supervisor involved in legal problems put forth by the federal Trade Commission. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the future. With obstacles in the type of a possible social modification and also low worker spirits, the company needs a full reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of Aion Corp is raising unpredictability in the working environment causing different difficulties 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 role in influencing strategic choices because Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Payment's intervention in the process. Offered the fact that the store has a worldwide visibility with branches in UK, USA, Canada and Germany, political consider each of these nations may have the ability to impact performance or critical objectives. Federal Profession Commission's antitrust suit versus the merger occupied important time of the organization's elderly management recommending that 'political' factors can have significant implications for a global company.

Economic Factors: Economic factors such as the appearance of local business in the global circumstance recommend that Aion Corp is prospering in an atmosphere where there is prospective development of businesses. Along with this, reality that shop consumers are mainly trying to find office materials for home offices suggests that the marketplace has a rising pattern of business owners as well as home based businesses.

Social factors: Social fads in the economic situation reveal that consumers are looking for convenience along with attractive prices. Marketing research shows how the consumer for Aion Corp lacks awareness concerning finding solutions which can use a mix of comfort and also low costs.

Technical factors: Modern technology plays a crucial duty in Aion Corp's service strategy specifically as the company is piloting Modern technology centers which would certainly use technology sales and support in the type of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Behavior concerns can be seen in Aion Corp's case as highlighted in this section.

Apprehensions regarding cultural modification: There is uneasiness about a cultural change that would occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with the majority of the team member currently showing discontent over this prospective action. This expected change has actually developed stress and anxiety in the work environment which has actually been combined with the previous tension of preparing the company for a prospective merging with House Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is shortage of personnel that can match the demanding setting of a hectic company. Not only does this lead to trouble in locating the ideal individuals, it puts stress and anxiety on new hires as can not stand up to the pace and also stress that the company anticipates them to birth.

Dual Coverage Lines: Newcomers find this business culture cumbersome and also hard to deal with specifically as dotted line relationships are implied to be weak in general and unbiased setup and also performance evaluation is still done by the strong line supervisor. This implies that beginners can shed quality about their particular functions and purposes specifically as dotted line coverage does not maintain them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been guessed that the latter would take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and also proper for the work however the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Instability: Worry as well as insecurity can be recognized as two significant problems that Lewis would certainly be taking care of particularly as the merger has actually now be terminated as well as 2 elderly execs of the advertising and marketing department would certainly be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not just supervise of brining concerning a social change but would certainly likewise need to verify herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's management design and also its conflict with the advertising department's duty can additionally be seen as an OB challenge particularly as she has been made use of to dealing with concerns in the procedures division where personnel are instructed to concentrate on procedures and get them right. The advertising division on the other hand can be seen as a team of individuals that are utilized to being supported by Krasnow that focused more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, advertising and marketing, merchandizing and operations respectively over the appropriation of the advertising and marketing mix can be identified as one more OB concern. Although the advertising and marketing division does not share the same vision as the other two divisions concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allocation amongst one another either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising departments can be determined as another OB problem which might need additional focus. The truth that the advertising and marketing areas in the marketing division are disconnected is stopping both divisions from gaining from each various other's experience and also experience. Assimilation of advertising and marketing with retailing as well as operations would certainly come to be more difficult if the marketing division itself is disintegrated which can be an additional possible OB problem.

Aion Corp Analysis

Numerous concepts have actually been utilized to describe the conditions to obtain more quality about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are easy as well as careless, have little aspiration and resist modification. The tough variation of this concept highlighted coercion, tight controls, hazards as well as punishments. Gradually it produces low efficiency, subtle sabotage and also rivalry (Deal, 2003). Although the scenario at Aion Corp is not totally following Concept X, it can be seen that new hires are discovering this environment rather stressful which may ultimately lead to a higher disposition of the management towards Concept X. Based on McGregor's supported sight, which he called Concept Y, the crucial task of the management is to prepare business conditions to ensure that people can attain their own goals best by guiding their efforts towards business benefits. If people discover no contentment in their job, the management would have little choice yet to depend on theory X and external control (Bargain, 2003). Also while assessing Lewis's administration style, concept X may have appropriated in the procedures department somewhat yet the Marketing department would require reliance on Concept Y in order to get the creativity and creativity from the groups.

Tuckman's Teamwork Concept: As for Lewis's concern about bringing harmony in between the marketing and advertising division is worried, this would originally result in clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the initial phase of group growth, individuals may not bond, as they are hectic locating their place in the team. By incorporating the advertising and marketing department's job, there may coincide preliminary disconnect which can result in the 2nd phase of 'storming' where the groups test one another. It is just throughout the 3rd phase or 'norming' when they would certainly come together to share concepts prior to the group can bring about harmony in the 4th phase 'executing'.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), individuals are fairly awkward with change, which is evident by the circumstance at Aion Corp The scenario can be viewed as a regular program of life if is studied based on Bridge's theory where he describes that people undergo 3 stages of transition when they experience adjustment. 'Ending, losing as well as Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter phase one and so there might be emotions like unhappiness, unpredictability, aggravation, anger, concern, denial and also disorientation.The circumstance at the advertising department of Aion Corp is similar so Lewis can get comfortable with the suggestion that it is not remarkable habits. In the second phase, there may be a demand to connect the gap between the brand-new and old society so Lewis might need to encounter this experience as soon as Krasnow leaves. There may be low morale as well as reduced performance at this phase which must not be taken as an obstacle. It is during this phase that Lewis will have to give assistance to the division so that they can locate an orientation. It can be seen exactly how Krasnow has actually currently made this shift less complicated by making Lewis get involved in the department a year prior to his actual separation. According to Bridges' Version, stage three will certainly produce visibility to learning, High power and commitment as people will embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to insecurity at the workplace has actually been triggered first of all by the modification in administration and also secondly by the reality that the merging will no more be launched. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'safety and security needs as being a reduced level demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to really feel safe and secure and out of danger' goes to the 2nd degree of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physiological 'and 'Security' requires satisfied. This suggests that unless the workers are made to feel safe concerning their current employment status in Aion Corp they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Aion Corp Case Study



Ramification of Analysis.

The OB analysis has actually looked at different concepts to understand how to manage the current scenario available. The following three alternatives have actually been recommended to assist Lewis manage the organizational obstacles in the marketing department. Each of these choices has been recommended for reducing the shift required to bring the advertising and marketing department in line with the needs of the market and for making the cultural modification that would comply with when the present leader leaves.

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

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house advertising and marketing company of Aion Corp is currently strength for the organization in terms of conserving up on expenses associated with advertising and marketing and also promotion. Since no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the marketing feature, this is a positive opportunity for integrating the marketing and advertising functions. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business advertising and marketing together with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The advantage of this technique is that it will integrate both functions while decreasing the requirement for hiring an added resource for advertising and marketing. Lewis would be heading the advertising division and in any type of case her substitute would be required for the existing role that she is performing. The drawback of this choice is that exterior hiring may cause resentment from inner employees who may be considering the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Offered the competitive pressures and high quality work needed from the advertising company, it is suggested that Lewis must allow the production system to be a separate function from the advertising system. Since many advertising agencies had these 2 functions as separate units, it makes even more feeling to comply with the norm.

Integration of Marketing with Workflows: Given that Lewis is already taking care of the advertising and marketing as well as procedures divisions concurrently; it makes good sense to incorporate the two features given that she has actually been efficiently looking after both ends. The reality that the two departments currently have major distinctions over allocation of sources suggests that this assimilation may be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are different downsides of this move specifically as it would put too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring design for the advertising and marketing division recommends that these two departments would be culturally diverse. In addition to this, Lewis might not be able to use one type of leadership design to both divisions which might cause inefficiency in either among both features.

Suggestion.



An evaluation of the three alternatives shows that integration of advertising and operations would not be a possible action due to the huge distinctions in between the two departments regardless of the fact that presently Lewis is dealing with both. While splitting up of the production function might have been a positive move for the advertising and marketing department, the truth that it would certainly indicate placing a third feature under Lewis's wing means this must be prevented.

Action Strategy.
Recommendation
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Production feature will remain part of advertising under advertising function.

Lewis will divide herself from procedures.

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

Open door plan as well as emphasis on cross departmental communication will certainly be focused on removing dissonance.

Contingency plan.

If the integration does not work out as prepared, a contingency strategy would certainly follow which would certainly separate the production function from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will definitely be divided by positioning it under an SVP production.