Altoona State Investment Board July 2012 Case Study Help


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Altoona State Investment Board July 2012 Case Study Solution

Background and Facts

Altoona State Investment Board July 2012 a workplace products store for little and also medium sized businesses has actually just recently been involved in planning for a merger with its rival House Deport, which has influenced effectiveness degrees in departmentswith the elderly manager associated with legal issues put forth by the federal Profession Compensation. With the Advertising Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With difficulties in the kind of a possible social change and reduced employee spirits, the company is in need of a complete reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising and marketing department of Altoona State Investment Board July 2012 is boosting unpredictability in the workplace causing numerous difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical decisions given that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Profession Commission's treatment while doing so. Offered the fact that the store has a global presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may be able to affect performance or calculated goals. Federal Profession Commission's antitrust suit against the merger used up useful time of the organization's senior administration suggesting that 'political' factors can have serious effects for a worldwide business.

Economic Factors: Economic factors such as the emergence of small businesses in the international situation suggest that Altoona State Investment Board July 2012 is flourishing in an environment where there is prospective development of services. Fact that shop consumers are mostly looking for workplace materials for house offices suggests that the market has a rising fad of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economic climate reveal that clients are trying to find benefit as well as eye-catching rates. Market research shows how the customer for Altoona State Investment Board July 2012 lacks awareness about discovering options which can provide a combination of comfort and also low costs.

Technological factors: Technology plays an essential role in Altoona State Investment Board July 2012's service technique specifically as the organization is piloting Innovation facilities which would certainly offer technology sales and assistance in the type of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

Several underlying Business Behavior issues can be seen in Altoona State Investment Board July 2012's case as highlighted in this area.

Uneasiness concerning social change: There is apprehension concerning a cultural adjustment that would occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the team member already showing unhappiness over this potential relocation. This predicted modification has developed tension in the workplace which has been combined with the past stress of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is shortage of workers that can match the stressful atmosphere of a hectic organization. Not just does this lead to trouble in discovering the appropriate individuals, it places stress on brand-new hires as can not withstand the speed as well as pressure that the company expects them to birth.

Twin Coverage Lines: Beginners discover this business culture troublesome as well as tough to cope with particularly as populated line partnerships are meant to be weaker in general and unbiased setup as well as performance examination is still done by the solid line manager. This indicates that newcomers could shed quality regarding their particular functions and goals particularly as populated line reporting does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's setting came as an impact to her spirits. Lewis might have been qualified as well as appropriate for the work but the truth that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Instability: Concern and insecurity can be determined as two major issues that Lewis would be taking care of particularly as the merging has actually now be terminated and two elderly executives of the marketing department would certainly be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social adjustment but would additionally have to show herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's management style and also its incompatibility with the advertising and marketing division's duty can likewise be seen as an OB difficulty particularly as she has actually been made use of to taking care of issues in the operations division where employees are taught to concentrate on procedures and obtain them right. The advertising division on the other hand can be viewed as a group of people who are made use of to being supported by Krasnow that concentrated more on output than processes.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising, merchandizing as well as operations respectively over the allotment of the advertising mix can be identified as one more OB issue. The marketing division 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 divisions do not concur over the advertising mix allotment among one an additional either.

Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising departments can be identified as an additional OB issue which could need further interest. The truth that the marketing and advertising areas in the marketing department are detached is stopping both divisions from acquiring from each various other's experience and expertise. Integration of marketing with merchandising as well as operations would become harder if the advertising and marketing division itself is disintegrated which can be an additional possible OB worry.

Altoona State Investment Board July 2012 Analysis

Different concepts have been made use of to discuss the conditions to obtain further quality regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are easy and careless, have little ambition and resist change. The difficult variation of this theory emphasized coercion, tight controls, threats and also punishments. Gradually it generates reduced efficiency, subtle sabotage as well as rivalry (Offer, 2003). The situation at Altoona State Investment Board July 2012 is not totally complying with Theory X, it can be seen that brand-new hires are locating this setting instead difficult which might ultimately lead to a greater inclination of the monitoring towards Theory X. According to McGregor's advocated sight, which he called Concept Y, the necessary job of the administration is to set up business problems to ensure that individuals can accomplish their own goals best by guiding their efforts towards organizational incentives. If people find no fulfillment in their job, the monitoring would have little selection but to depend on theory X and outside control (Bargain, 2003). Also while analyzing Lewis's monitoring design, theory X may have appropriated in the procedures division somewhat yet the Marketing department would certainly call for reliance on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's worry concerning bringing consistency in between the advertising and marketing as well as advertising department is concerned, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising as well as marketing division's job, there may be the same first disconnect which could lead to the second phase of 'storming' where the groups test one an additional.

Bridges' Transition Version: Based On William Bridge's theory (appendix 4), individuals are rather unpleasant with adjustment, which is noticeable by the scenario at Altoona State Investment Board July 2012 The circumstance can be seen as a normal training course of life if is studied as per Bridge's theory where he describes that individuals undergo three stages of change when they experience modification. 'Closing, losing and also Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people exist with modification, they get in phase one therefore there might be emotions like unhappiness, unpredictability, frustration, temper, fear, denial and disorientation.The circumstance at the marketing department of Altoona State Investment Board July 2012 is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary habits. In the 2nd phase, there may be a requirement to connect the space in between the new and old society so Lewis might need to face this challenge as soon as Krasnow leaves. There might be reduced spirits as well as reduced performance at this phase which ought to not be taken as a setback. It is throughout this stage that Lewis will need to give guidance to the division to make sure that they can locate a sense of direction. It can be seen how Krasnow has currently made this shift easier by making Lewis obtain involved in the department a year prior to his actual separation. As per Bridges' Version, stage three will certainly cause visibility to understanding, High energy as well as dedication as individuals will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the significance of 'security needs as being a lower level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and out of danger' is at the second degree of demands. Prior to a worker can be made to develop emotionally, he needs to have his 'Physical 'and 'Security' requires met.

SWOT Analysis for Altoona State Investment Board July 2012 Case Study

Implication of Analysis.

The OB analysis has looked at different theories to recognize how to manage the current scenario available. The complying with three options have been recommended to assist Lewis handle the organizational difficulties in the advertising and marketing division. Each of these alternatives has been suggested for relieving the shift required to bring the advertising and marketing department according to the demands of the market and also for making the cultural modification that would comply with as soon as the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting as well as Production functions. Combination of Marketing with Workflow.

Analysis of Alternatives.

Integration of Marketing & Marketing Functions: The in-house marketing company of Altoona State Investment Board July 2012 is already strength for the company in terms of conserving up on expenses connected to marketing and promotion. Since no new recruitment has been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising and marketing function, this is a beneficial opportunity for integrating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business advertising in addition to company and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The benefit of this technique is that it will certainly incorporate the two features while decreasing the need for employing an additional source for marketing. Along with this, Lewis would be heading the marketing department and regardless her replacement would be required for the current function that she is performing. The drawback of this option is that exterior hiring might bring about resentment from interior workers who may be eying the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Manufacturing: Offered the competitive stress and also top quality work required from the ad agency, it is suggested that Lewis ought to allow the production unit to be a separate function from the advertising unit. Since many advertising agencies had these 2 features as different systems, it makes more sense to follow the norm. In addition to this, both functions might have the ability to focus on their core triggers more successfully. The downside of this approach would certainly be that additional expenses would have to be borne for establishing up separate manufacturing features. Along with this, a manufacturing head may have to be worked with which might increase overheads for the organization.

Combination of Advertising with Operations: Considering that Lewis is already dealing with the advertising and marketing and procedures departments at the same time; it makes sense to incorporate the two functions considering that she has actually been effectively looking after both ends. The truth that the two departments already have significant distinctions over appropriation of resources suggests that this combination might be able to produce consistency specifically as Lewis would be heading both ends.However there are numerous disadvantages of this action particularly as it would place too much problem over Lewis's shoulders. The truth that Lewis has to adapt her monitoring style for the marketing department recommends that these two divisions would be culturally varied. Lewis might not be able to use one type of leadership design to both departments which can result in inefficiency in either one of the 2 functions.


An analysis of the three choices suggests that integration of marketing as well as operations would not be a possible action as a result of the huge differences between the two departments although that presently Lewis is managing both. While separation of the manufacturing feature might have been a desirable action for the advertising division, the reality that it would indicate putting a 3rd feature under Lewis's wing indicates this need to be avoided too. The combination of the marketing department is the very best alternative in regards to getting the optimum results from the department. An activity prepare for this option is talked about below.

Action Strategy.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will certainly stay component of advertising under marketing function.

Lewis will divide herself from operations.

An autonomous management style with employee empowerment will certainly be used in advertising and marketing division.

Open door plan and also emphasis on cross department communication will certainly be focused on removing disharmony.

Contingency strategy.

If the integration does not exercise as planned, a backup strategy would comply with which would divide the manufacturing function from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will most definitely be divided by putting it under an SVP manufacturing.