Alan Greenspan In 2004 Case Study Help


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Alan Greenspan In 2004 Case Study Help

Background and Facts

Alan Greenspan In 2004 a workplace materials retailer for small as well as medium sized services has lately been involved in planning for a merger with its competitor Home Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor involved in legal complications presented by the government Profession Commission. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With difficulties in the form of a possible cultural adjustment and also reduced staff member morale, the company is in need of a full reengineering effort at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the marketing division of Alan Greenspan In 2004 is increasing unpredictability in the working environment bring about numerous challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting calculated choices given that Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the reality that the shop has a global visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations might be able to impact performance or critical objectives. Federal Trade Commission's antitrust fit versus the merging used up useful time of the organization's senior management recommending that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide situation recommend that Alan Greenspan In 2004 is prospering in an environment where there is potential growth of companies. Truth that store clients are mostly looking for office materials for residence offices suggests that the market has an increasing trend of entrepreneurs as well as house based companies.

Social factors: Social trends in the economic situation show that customers are trying to find convenience in addition to attractive prices. Market research shows how the client for Alan Greenspan In 2004 lacks recognition regarding locating services which can supply a mix of convenience and low costs.

Technological factors: Technology plays a vital role in Alan Greenspan In 2004's service strategy especially as the company is piloting Innovation facilities which would use technology sales and support in the kind of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Actions concerns can be seen in Alan Greenspan In 2004's case as highlighted in this area.

Worries regarding cultural adjustment: There is worry concerning a social adjustment that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with most of the personnel currently showing unhappiness over this potential move. This anticipated change has developed anxiety in the workplace which has actually been combined with the previous stress of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of personnel that can match the demanding atmosphere of a hectic organization. Not only does this lead to problem in locating the ideal people, it puts stress and anxiety on brand-new hires as can not endure the rate and also stress that the organization expects them to birth.

Twin Reporting Lines: Beginners locate this business culture difficult and also challenging to cope with particularly as dotted line relationships are meant to be weaker as a whole as well as unbiased setting and also efficiency examination is still done by the strong line manager. This means that newbies can lose clarity concerning their corresponding roles and also goals particularly as populated line coverage does not maintain them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had been hypothesized that the last would certainly take Krasnow's position came as a strike to her morale. Lewis might have been qualified and also suitable for the work but the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Instability: Concern and also instability can be recognized as 2 significant issues that Lewis would be dealing with specifically as the merging has actually now be terminated and also 2 senior executives of the marketing division would be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders that would not simply supervise of brining about a social adjustment yet would certainly additionally need to confirm herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's management design and also its conflict with the advertising division's role can likewise be viewed as an OB challenge especially as she has actually been utilized to taking care of problems in the procedures division where employees are educated to focus on procedures and obtain them right. The advertising department on the various other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow who focused extra on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between three divisions, marketing, merchandizing and operations specifically over the appropriation of the marketing mix can be determined as another OB issue. The advertising and marketing department does not share the very same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not concur over the advertising and marketing mix allotment among one an additional either.

Disintegration in Marketing Division: Disintegration in between the advertising and marketing divisions can be identified as another OB problem which might require additional attention. The truth that the marketing and advertising sections in the advertising and marketing division are disconnected is preventing both departments from gaining from each various other's experience as well as competence. Assimilation of advertising and marketing with retailing as well as operations would certainly come to be more difficult if the advertising department itself is disintegrated which can be one more potential OB concern.

Alan Greenspan In 2004 Analysis

Various theories have been used to explain the situations to obtain additional clarity regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are easy and lazy, have little aspiration as well as stand up to change. The scenario at Alan Greenspan In 2004 is not completely following Theory X, it can be seen that brand-new hires are locating this atmosphere instead demanding which may at some point lead to a greater inclination of the management towards Theory X. Even while analyzing Lewis's management design, concept X might have been suitable in the procedures division to some extent yet the Advertising department would call for reliance on Theory Y in order to get the creativity as well as originality from the groups.

Tuckman's Team effort Theory: As far as Lewis's problem about bringing harmony between the marketing as well as advertising and marketing department is concerned, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and advertising and marketing department's job, there may be the same first separate which might lead to the second phase of 'storming' where the teams test one an additional.

When individuals are offered with adjustment, they get in phase one as well as so there may be feelings like sadness, unpredictability, stress, anger, worry, rejection as well as disorientation.The situation at the advertising and marketing department of Alan Greenspan In 2004 is comparable so Lewis can obtain comfy with the idea that it is not amazing behavior. It is throughout this phase that Lewis will have to offer assistance to the division so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this shift simpler by making Lewis obtain entailed in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the value of 'safety and security needs as being a lower level requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and out of threat' is at the second level of needs. Prior to a worker can be made to develop psychologically, he needs to have his 'Physical 'and 'Safety' requires satisfied.

SWOT Analysis for Alan Greenspan In 2004 Case Study

Effects of Analysis.

The OB analysis has actually looked at numerous concepts to recognize exactly how to handle the present situation handy. The following 3 alternatives have actually been proposed to assist Lewis take care of the business difficulties in the advertising and marketing division. Each of these options has been recommended for reducing the change required to bring the marketing department in line with the demands of the marketplace as well as for making the cultural change that would follow once the current leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Manufacturing functions. Assimilation of Advertising with Operations.

Assessment of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The internal advertising and marketing company of Alan Greenspan In 2004 is currently strength for the organization in regards to conserving up on expenses related to marketing and also promotion. Because no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising and marketing feature, this is a desirable opportunity for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The benefit of this method is that it will integrate both functions while decreasing the requirement for working with an added resource for advertising. Lewis would certainly be heading the marketing department and also in any kind of case her substitute would certainly be needed for the present function that she is doing. The negative aspect of this alternative is that exterior hiring may bring about animosity from interior workers who might be eying the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Given the competitive pressures and premium quality work called for from the advertising agency, it is advised that Lewis needs to enable the manufacturing unit to be a different feature from the advertising device. Because most advertising agencies had these 2 functions as different units, it makes more feeling to adhere to the norm. Both functions might be able to concentrate on their core activates a lot more effectively. The drawback of this approach would be that additional expenses would certainly have to be borne for setting up different production features. In addition to this, a production head might need to be hired which might enhance expenses for the company.

Combination of Advertising And Marketing with Procedures: Considering that Lewis is already taking treatment of the advertising and marketing as well as procedures divisions simultaneously; it makes feeling to incorporate the 2 functions given that she has been successfully taking care of both ends. The fact that Lewis has to adapt her administration style for the marketing department recommends that these 2 divisions would certainly be culturally diverse.


An assessment of the three alternatives shows that assimilation of advertising as well as procedures would not be a feasible action because of the vast differences between the two departments despite the fact that currently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a favorable action for the advertising and marketing division, the truth that it would indicate putting a third feature under Lewis's wing means this must be avoided as well. The integration of the marketing division is the most effective alternative in terms of obtaining the ideal results from the division. An action plan for this alternative is discussed below.

Action Strategy.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing feature will certainly remain component of advertising and marketing under advertising and marketing function.

Lewis will certainly separate herself from operations.

A democratic management design with staff member empowerment will certainly be used in marketing division.

Open up door plan and also focus on cross departmental communication will be targeted at eliminating dissonance.

Contingency strategy.

If the combination does not work out as planned, a contingency strategy would adhere to which would separate the production feature from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will most definitely be separated by putting it under an SVP manufacturing.