Alphadale Community Bank Inc Case Study Analysis


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Alphadale Community Bank Inc Case Study Analysis

Background and Facts

Alphadale Community Bank Inc an office products seller for small and also medium sized organisations has actually recently been associated with planning for a merger with its competitor Residence Deport, which has influenced effectiveness levels in departmentswith the elderly supervisor associated with legal complications presented by the government Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With challenges in the type of a possible cultural change and also low employee spirits, the organization requires a complete reengineering effort at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing department of Alphadale Community Bank Inc is raising uncertainty in the workplace bring about numerous difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic choices considering that Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Profession Compensation's treatment in the process. Provided the reality that the store has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may be able to influence performance or strategic objectives. Federal Profession Payment's antitrust suit versus the merging used up important time of the company's senior monitoring suggesting that 'political' factors can have severe ramifications for a worldwide service.

Economic Factors: Financial factors such as the development of small companies in the worldwide scenario recommend that Alphadale Community Bank Inc is thriving in an environment where there is prospective growth of companies. Truth that shop customers are primarily looking for office supplies for house offices recommends that the market has a climbing trend of business owners as well as home based services.

Social factors: Social fads in the economy show that customers are trying to find ease in addition to eye-catching rates. Marketing research shows how the consumer for Alphadale Community Bank Inc lacks awareness concerning discovering services which can provide a combination of convenience and also inexpensive.

Technical factors: Technology plays an important function in Alphadale Community Bank Inc's company technique particularly as the organization is piloting Innovation facilities which would offer technology sales and assistance in the type of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Behavior concerns can be seen in Alphadale Community Bank Inc's case as highlighted in this section.

Uneasiness regarding social change: There is concern concerning a social change that would certainly happen once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the personnel already revealing unhappiness over this possible move. This predicted modification has actually created anxiety in the workplace which has actually been paired with the previous tension of preparing the firm for a potential merger with House Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of personnel that can match the demanding environment of a busy organization. Not only does this cause trouble in discovering the appropriate individuals, it puts stress and anxiety on new hires as can not stand up to the speed and also stress that the organization expects them to birth.

Double Reporting Lines: Beginners find this business culture cumbersome as well as difficult to handle particularly as dotted line connections are implied to be weaker as a whole as well as unbiased setting and also efficiency examination is still done by the strong line manager. This implies that beginners could shed clarity regarding their corresponding duties and also goals especially as populated line coverage does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the latter would take Krasnow's setting came as an impact to her morale. Lewis might have been capable and also suitable for the work but the truth that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Worry as well as instability can be determined as 2 significant problems that Lewis would be dealing with particularly as the merger has now be cancelled as well as 2 elderly execs of the marketing department would be leaving. The whole duty of the department would be falling on Lewis's shoulders who would not just supervise of brining regarding a cultural adjustment however would certainly additionally need to show herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's duty can also be seen as an OB challenge particularly as she has been used to taking care of problems in the operations department where personnel are taught to focus on processes and also obtain them right. The advertising division on the various other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that concentrated much more on result than processes.

Interdepartmental Differences: Interdepartmental differences in between three divisions, marketing, merchandizing and also operations respectively over the allotment of the advertising and marketing mix can be determined as an additional OB concern. The advertising and marketing department does not share the exact same vision as the other 2 divisions relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and procedures divisions do not concur over the advertising mix appropriation among one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be determined as another OB problem which can require further interest. The fact that the marketing and advertising sections in the marketing division are detached is avoiding both departments from gaining from each various other's experience and knowledge. Assimilation of advertising and marketing with retailing and also operations would end up being more difficult if the marketing department itself is broken down which can be one more prospective OB concern.

Alphadale Community Bank Inc Analysis

Various theories have actually been utilized to discuss the situations to obtain additional clarity about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are passive and also lazy, have little ambition as well as withstand adjustment. The scenario at Alphadale Community Bank Inc is not totally following Theory X, it can be seen that brand-new hires are finding this environment rather stressful which may ultimately lead to a better disposition of the administration in the direction of Concept X. Even while analyzing Lewis's management design, theory X might have been suitable in the procedures division to some extent yet the Advertising and marketing department would require dependence on Theory Y in order to get the creative thinking and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue regarding bringing harmony in between the marketing as well as advertising and marketing department is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and marketing department's work, there may be the same preliminary disconnect which might lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Transition Design: Based On William Bridge's concept (appendix 4), people are fairly uneasy with modification, which is apparent by the situation at Alphadale Community Bank Inc The scenario can be seen as a regular program of life if is researched based on Bridge's concept where he describes that people undergo 3 phases of shift when they experience adjustment. 'Closing, losing as well as Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they go into phase one therefore there may be emotions like sadness, unpredictability, disappointment, temper, concern, denial and disorientation.The circumstance at the advertising and marketing department of Alphadale Community Bank Inc is similar so Lewis can get comfortable with the concept that it is not amazing behavior. In the second phase, there might be a demand to link the gap in between the brand-new and also old society so Lewis might have to face this experience when Krasnow leaves. There may be low morale and reduced productivity at this stage which must not be taken as a setback. It is throughout this phase that Lewis will have to give advice to the division to ensure that they can discover an orientation. It can be seen how Krasnow has currently made this shift easier by making Lewis obtain associated with the department a year prior to his actual separation. Based on Bridges' Model, stage 3 will certainly bring about visibility to learning, High energy as well as dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to insecurity at the workplace has actually been caused to start with by the modification in monitoring as well as secondly by the fact that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the value of 'safety needs as being a reduced degree demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel safe and secure as well as untouched' goes to the 2nd level of requirements. Prior to a staff member can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Safety and security' needs met. This shows that unless the personnel are made to feel secure regarding their current employment condition in Alphadale Community Bank Inc they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Alphadale Community Bank Inc Case Study

Ramification of Analysis.

The OB analysis has taken a look at different concepts to recognize exactly how to deal with the present situation available. The following 3 alternatives have actually been proposed to assist Lewis take care of the organizational challenges in the advertising division. Each of these alternatives has actually been proposed for easing the transition needed to bring the advertising department in line with the demands of the market and also for making the social change that would comply with as soon as the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing features. Combination of Advertising with Procedures.

Assessment of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business advertising along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and marketing and also advertising and marketing functions.

The advantage of this technique is that it will integrate the two functions while reducing the requirement for employing an extra resource for advertising and marketing. Lewis would certainly be heading the marketing division as well as in any kind of case her substitute would certainly be needed for the present duty that she is doing. The negative aspect of this option is that external hiring might produce resentment from inner personnel that might be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Provided the affordable pressures and also excellent quality job needed from the ad agency, it is advised that Lewis needs to permit the production unit to be a separate feature from the advertising and marketing device. Since a lot of ad agency had these two functions as separate units, it makes more sense to follow the standard. Both functions might be able to focus on their core turns on a lot more efficiently. The negative aspect of this technique would be that extra expenses would have to be borne for setting up different production features. Along with this, a production head might have to be hired which might raise expenses for the organization.

Assimilation of Advertising And Marketing with Workflows: Given that Lewis is currently taking care of the advertising and procedures departments concurrently; it makes good sense to integrate both features considering that she has been efficiently dealing with both ends. The fact that both divisions currently have major distinctions over appropriation of resources suggests that this combination might have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are numerous disadvantages of this move particularly as it would certainly place too much concern over Lewis's shoulders. The fact that Lewis has to adapt her monitoring design for the marketing division recommends that these two divisions would be culturally varied. Lewis may not be able to apply one type of management style to both departments which can result in ineffectiveness in either one of the 2 features.


An evaluation of the 3 alternatives shows that assimilation of marketing and also procedures would certainly not be a viable action due to the substantial distinctions in between the two divisions although that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a favorable relocation for the advertising and marketing division, the reality that it would certainly mean positioning a third function under Lewis's wing indicates this ought to be avoided. The integration of the advertising and marketing department is the best choice in terms of obtaining the optimal arise from the division. An activity plan for this option is discussed listed below.

Action Plan.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing function will certainly continue to be component of marketing under advertising feature.

Lewis will certainly divide herself from operations.

An autonomous management design with staff member empowerment will certainly be made use of in advertising department.

Open door policy and also focus on cross department communication will certainly be targeted at getting rid of dissonance.

Backup strategy.

If the integration does not work out as prepared, a backup strategy would comply with which would divide the production function from the advertising and marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the production function will definitely be divided by putting it under an SVP manufacturing.