Menu

Alphatec Electronics Pcl Case Study Help

CASE HELP

Home >> Harvard >> Alphatec Electronics Pcl >>

Alphatec Electronics Pcl Case Study Help

Background and Facts

Alphatec Electronics Pcl an office products retailer for little and also average sized organisations has lately been associated with preparing for a merging with its rival House Deport, which has affected performance degrees in departmentswith the senior supervisor associated with lawful difficulties presented by the government Profession Commission. With the Marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With difficulties in the kind of a potential cultural change and also low employee spirits, the organization requires a complete reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Alphatec Electronics Pcl is boosting unpredictability in the workplace bring about various challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting strategic decisions considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment at the same time. Provided the truth that the store has a global visibility with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations might be able to influence efficiency or strategic goals. Federal Profession Commission's antitrust fit against the merger took up important time of the organization's elderly management recommending that 'political' factors can have significant implications for an international organisation.

Economic Factors: Financial factors such as the emergence of small companies in the international situation suggest that Alphatec Electronics Pcl is thriving in an atmosphere where there is possible growth of organisations. Along with this, reality that store clients are mostly trying to find workplace materials for home offices recommends that the market has a rising trend of entrepreneurs and online businesses.

Social factors: Social trends in the economic situation reveal that clients are looking for benefit along with eye-catching rates. Market research demonstrates how the customer for Alphatec Electronics Pcl does not have recognition regarding locating services which can supply a mix of convenience and low costs.

Technological factors: Modern technology plays an important function in Alphatec Electronics Pcl's organisation approach particularly as the company is piloting Innovation centers which would certainly use modern technology sales and assistance in the type of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior issues can be seen in Alphatec Electronics Pcl's case as highlighted in this section.

Worries regarding social adjustment: There is apprehension concerning a cultural change that would take place once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with a lot of the employee currently showing discontent over this prospective action. This anticipated modification has actually created stress in the workplace which has been coupled with the past stress of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is scarcity of employees that can match the difficult setting of a fast-paced company. Not just does this result in trouble in locating the best people, it puts anxiety on new hires as can not hold up against the speed as well as stress that the company anticipates them to bear.

Double Coverage Lines: Newbies find this business society cumbersome and also difficult to manage especially as populated line partnerships are indicated to be weak as a whole and unbiased setup and efficiency analysis is still done by the solid line manager. This indicates that newbies could lose clearness about their respective roles and also purposes specifically as dotted line coverage does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been capable as well as ideal for the task but the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Task Instability: Worry and also instability can be identified as two significant problems that Lewis would certainly be handling particularly as the merging has actually currently be cancelled as well as 2 senior execs of the advertising and marketing department would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would certainly not just be in charge of brining concerning a cultural change however would also need to verify herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's administration design and its incompatibility with the marketing department's role can also be seen as an OB challenge especially as she has been made use of to managing problems in the procedures division where employees are educated to concentrate on processes as well as get them. The advertising department on the other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing and also operations specifically over the allowance of the advertising and marketing mix can be recognized as another OB worry. The advertising department does not share the same vision as the various other 2 departments regarding the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix appropriation among one an additional either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing divisions can be identified as one more OB issue which might need further interest. The reality that the marketing and advertising areas in the marketing department are separated is avoiding both divisions from acquiring from each various other's experience and also proficiency. Combination of advertising and marketing with retailing as well as procedures would certainly come to be more difficult if the advertising and marketing division itself is degenerated which can be another potential OB problem.

Alphatec Electronics Pcl Analysis

Numerous theories have been used to discuss the situations to get more clarity concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that staffs are easy and lazy, have little passion and withstand adjustment. The circumstance at Alphatec Electronics Pcl is not completely complying with Concept X, it can be seen that new hires are discovering this setting instead demanding which may eventually lead to a better inclination of the management in the direction of Concept X. Even while examining Lewis's monitoring style, theory X might have been suitable in the procedures division to some degree however the Advertising and marketing division would need reliance on Theory Y in order to obtain the creative thinking and also creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's problem concerning bringing consistency in between the advertising and marketing division is concerned, this would at first result in contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the initial stage of team development, individuals might not bond, as they are busy discovering their location in the group. By integrating the marketing and advertising division's work, there may coincide first disconnect which might bring about the second stage of 'storming' where the groups test each other. It is only throughout the 3rd stage or 'norming' when they would certainly come with each other to share suggestions prior to the team can bring about harmony in the 4th phase 'doing'.

When people are offered with modification, they get in phase one and also so there might be emotions like despair, uncertainty, aggravation, rage, concern, rejection and disorientation.The circumstance at the advertising department of Alphatec Electronics Pcl is similar so Lewis can obtain comfortable with the idea that it is not amazing actions. It is during this stage that Lewis will certainly have to offer guidance to the division so that they can discover a sense of instructions. It can be seen how Krasnow has already made this change less complicated by making Lewis obtain entailed in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has goes over the relevance of 'safety and security needs as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure as well as out of risk' is at the 2nd degree of needs. Prior to an employee can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Safety' requires fulfilled.

SWOT Analysis for Alphatec Electronics Pcl Case Study



Implication of Analysis.

The OB analysis has actually looked at different theories to recognize just how to cope with the current scenario handy. The following three choices have actually been proposed to aid Lewis manage the business challenges in the marketing division. Each of these alternatives has been suggested for reducing the change required to bring the advertising and marketing department according to the needs of the market and for making the social adjustment that would comply with when the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Production functions. Combination of Advertising And Marketing with Procedures.

Analysis of Alternatives.

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

The advantage of this approach is that it will incorporate both features while reducing the need for employing an additional source for advertising. In addition to this, Lewis would be heading the advertising and marketing division and also in any case her replacement would be needed for the current duty that she is executing. The downside of this choice is that external hiring may produce animosity from inner workers who might be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Production: Provided the affordable pressures as well as top quality work called for from the advertising agency, it is recommended that Lewis ought to allow the production device to be a different function from the advertising system. Since most ad agency had these 2 functions as separate devices, it makes even more sense to comply with the standard. Along with this, both functions might be able to focus on their core triggers much more successfully. The disadvantage of this strategy would be that extra expenses would certainly have to be borne for setting up different manufacturing functions. A production head may have to be worked with which could boost expenses for the organization.

Integration of Marketing with Workflows: Considering that Lewis is already taking care of the marketing and also operations departments simultaneously; it makes good sense to integrate both features considering that she has been effectively taking care of both ends. The reality that the two divisions currently have major distinctions over allocation of sources suggests that this combination might have the ability to produce consistency especially as Lewis would certainly be heading both ends.However there are numerous drawbacks of this action specifically as it would certainly put way too much concern over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring design for the advertising and marketing department recommends that these two divisions would be culturally diverse. In addition to this, Lewis may not have the ability to apply one sort of leadership style to both departments which might lead to inefficiency in either one of the two functions.

Recommendation.



An analysis of the three alternatives suggests that combination of advertising and marketing and also operations would certainly not be a possible move because of the vast differences in between the two divisions although that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a desirable move for the advertising division, the fact that it would certainly mean placing a third function under Lewis's wing indicates this need to be stayed clear of also. The combination of the advertising division is the very best option in terms of obtaining the optimal results from the division. An action prepare for this option is reviewed listed below.

Activity Strategy.
Recommendation
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Production feature will continue to be component of marketing under marketing function.

Lewis will separate herself from procedures.

A democratic leadership style with worker empowerment will certainly be used in advertising department.

Open door policy and also focus on cross departmental communication will be aimed at removing dissonance.

Backup plan.

If the integration does not work out as planned, a contingency strategy would certainly follow which would divide the manufacturing feature from the advertising function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising division without an SVP. Because case the manufacturing function will absolutely be separated by positioning it under an SVP manufacturing.