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Aion Corp Case Study Analysis

CASE SOLUTION

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Aion Corp Case Study Solution

Background and Facts

Aion Corp an office materials retailer for small and also moderate sized companies has actually recently been associated with planning for a merger with its rival Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor associated with legal issues presented by the government Trade Payment. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With difficulties in the type of a prospective social adjustment and also low staff member morale, the company needs a full reengineering initiative at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising and marketing department of Aion Corp is boosting uncertainty in the working environment resulting in different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical choices because Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention at the same time. Given the fact that the shop has an international visibility with branches in UK, USA, Canada and also Germany, political factors in each of these countries may be able to affect performance or calculated goals. Federal Profession Compensation's antitrust match versus the merging used up important time of the organization's senior administration recommending that 'political' factors can have severe implications for a global service.

Economic Factors: Economic factors such as the development of small companies in the international situation recommend that Aion Corp is flourishing in an environment where there is possible growth of services. In addition to this, reality that shop customers are mainly trying to find workplace products for home offices suggests that the market has a climbing pattern of entrepreneurs as well as online services.

Social factors: Social fads in the economic climate show that consumers are looking for benefit in addition to eye-catching prices. Marketing research demonstrates how the client for Aion Corp does not have recognition about finding options which can supply a combination of benefit and affordable.

Technological factors: Modern technology plays an essential duty in Aion Corp's business approach especially as the organization is piloting Modern technology centers which would supply modern technology sales and also support in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Actions issues can be seen in Aion Corp's case as highlighted in this section.

Uneasiness about cultural modification: There is concern regarding a cultural change that would occur once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the employee already showing discontent over this potential relocation. This expected adjustment has actually created anxiety in the workplace which has actually been paired with the past anxiety of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of personnel that can match the stressful environment of a fast-paced organization. Not just does this bring about trouble in locating the best people, it puts anxiety on brand-new hires as can not hold up against the speed and stress that the company expects them to birth.

Double Reporting Lines: Newcomers locate this organizational society cumbersome and hard to manage specifically as dotted line connections are implied to be weak as a whole as well as objective setting as well as performance assessment is still done by the strong line supervisor. This indicates that newbies could lose clarity about their corresponding duties and purposes specifically as dotted line coverage does not maintain them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis might have been qualified and ideal for the work however the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Fear as well as instability can be recognized as two major concerns that Lewis would be managing specifically as the merging has currently be terminated and also 2 senior executives of the advertising and marketing division would certainly be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural change yet would also need to verify herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's function can additionally be seen as an OB obstacle particularly as she has been utilized to managing concerns in the procedures division where employees are educated to focus on procedures and get them. The advertising and marketing division on the various other hand can be viewed as a team of individuals who are used to being supported by Krasnow who concentrated more on result than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 divisions, advertising, merchandizing and procedures respectively over the allowance of the marketing mix can be identified as one more OB issue. The marketing department does not share the very same vision as the other 2 departments regarding the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix appropriation among one an additional either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising divisions can be recognized as one more OB issue which could need more focus. The fact that the marketing and advertising areas in the advertising department are disconnected is preventing both departments from acquiring from each various other's experience and experience. Assimilation of advertising and marketing with retailing as well as operations would certainly end up being harder if the advertising and marketing division itself is degenerated which can be an additional possible OB worry.

Aion Corp Analysis

Different theories have actually been made use of to explain the circumstances to obtain further clearness about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that staffs are easy and also lazy, have little passion and resist modification. The situation at Aion Corp is not completely adhering to Concept X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may at some point lead to a higher inclination of the management towards Concept X. Also while evaluating Lewis's management design, theory X might have been ideal in the procedures division to some level yet the Advertising division would certainly call for dependence on Theory Y in order to obtain the creative thinking and originality from the groups.

Tuckman's Teamwork Concept: As for Lewis's issue about bringing consistency in between the advertising and marketing division is concerned, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the first phase of group growth, people might not bond, as they are busy finding their place in the group. By integrating the advertising and marketing division's work, there might be the same preliminary separate which might bring about the second phase of 'storming' where the teams test each other. It is only during the third stage or 'norming' when they would certainly come with each other to share suggestions prior to the team can bring about harmony in the fourth phase 'performing'.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), people are rather awkward with adjustment, which is obvious by the scenario at Aion Corp The circumstance can be viewed as a regular course of life if is examined based on Bridge's theory where he explains that individuals undergo three stages of shift when they experience adjustment. 'End, losing and Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they go into stage one and so there might be feelings like sadness, unpredictability, stress, rage, worry, rejection as well as disorientation.The situation at the advertising division of Aion Corp is similar so Lewis can get comfy with the suggestion that it is not amazing actions. In the 2nd stage, there may be a need to bridge the gap between the new as well as old society so Lewis may have to encounter this ordeal when Krasnow leaves. There may be low spirits as well as reduced productivity at this phase which should not be taken as a problem. It is throughout this phase that Lewis will have to provide support to the division to make sure that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this transition much easier by making Lewis obtain involved in the division a year prior to his real separation. According to Bridges' Model, phase three will certainly produce openness to knowing, High power and commitment as individuals will embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has reviews the importance of 'protection requires as being a lower degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel secure and out of danger' is at the 2nd degree of needs. Before a staff member can be made to create emotionally, he needs to have his 'Physical 'and also 'Safety and security' needs satisfied.

SWOT Analysis for Aion Corp Case Study



Implication of Analysis.

The OB analysis has checked out numerous theories to recognize how to handle the existing circumstance at hand. The following 3 choices have been recommended to assist Lewis take care of the business difficulties in the advertising department. Each of these choices has been proposed for easing the change needed to bring the advertising department according to the demands of the marketplace as well as for making the social adjustment that would comply with as soon as the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Manufacturing functions. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both advertising and marketing and also advertising functions.

The benefit of this technique is that it will integrate both functions while lowering the requirement for employing an additional source for marketing. Lewis would certainly be heading the advertising and marketing division as well as in any type of case her replacement would be required for the current duty that she is executing. The downside of this choice is that outside hiring may bring about bitterness from inner employees who might be considering the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Given the competitive stress and also high top quality work required from the advertising and marketing firm, it is advised that Lewis must enable the manufacturing system to be a different function from the marketing system. Since most marketing companies had these two features as separate devices, it makes more feeling to adhere to the standard.

Integration of Advertising And Marketing with Operations: Because Lewis is already taking care of the marketing as well as operations departments simultaneously; it makes feeling to integrate the two functions since she has actually been efficiently taking care of both ends. The truth that Lewis has to adapt her administration style for the advertising and marketing department suggests that these two divisions would certainly be culturally varied.

Suggestion.



An evaluation of the 3 options suggests that integration of advertising as well as operations would certainly not be a feasible step due to the substantial differences in between the two departments despite the reality that currently Lewis is handling both. While splitting up of the manufacturing feature might have been a favorable move for the marketing department, the truth that it would certainly imply putting a third feature under Lewis's wing indicates this need to be stayed clear of.

Action Plan.
Recommendation
Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing function will certainly stay part of marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

A democratic management design with worker empowerment will certainly be made use of in advertising and marketing department.

Open up door policy and also emphasis on cross departmental interaction will certainly be focused on getting rid of dissonance.

Contingency strategy.

If the assimilation does not exercise as intended, a backup plan would comply with which would separate the manufacturing function from the advertising function 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 marketing division without an SVP. In that case the production function will most definitely be separated by placing it under an SVP manufacturing.