Apogee Health Care Case Study Solution


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Apogee Health Care Case Study Solution

Background and Facts

Apogee Health Care an office supplies store for tiny and moderate sized services has recently been associated with preparing for a merging with its competitor Residence Deport, which has impacted performance levels in departmentswith the senior supervisor involved in legal problems put forth by the government Profession Payment. With the Advertising Head putting forward 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 function in the future. With challenges in the form of a possible social adjustment as well as low staff member spirits, the company needs a full reengineering initiative at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising division of Apogee Health Care is boosting unpredictability in the workplace leading to different 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 significant function in affecting tactical choices since Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Provided the fact that the shop has a worldwide existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might be able to affect performance or calculated goals. Federal Profession Payment's antitrust suit against the merger took up beneficial time of the company's senior management suggesting that 'political' factors can have severe implications for a global organisation.

Economic Factors: Financial factors such as the development of small companies in the global situation suggest that Apogee Health Care is thriving in a setting where there is potential growth of organisations. Truth that shop clients are primarily looking for workplace supplies for house workplaces recommends that the market has an increasing fad of entrepreneurs as well as residence based services.

Social factors: Social patterns in the economic situation reveal that clients are searching for ease in addition to attractive costs. Marketing research shows how the customer for Apogee Health Care lacks recognition concerning discovering options which can provide a mix of benefit and affordable.

Technical factors: Innovation plays a vital duty in Apogee Health Care's business approach particularly as the organization is piloting Technology centers which would offer technology sales as well as assistance in the form of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Behavior problems can be seen in Apogee Health Care's case as highlighted in this section.

Apprehensions concerning cultural modification: There is concern concerning a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with the majority of the employee currently showing discontent over this potential step. This anticipated modification has created stress in the workplace which has actually been coupled with the previous anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of employees that can match the difficult environment of a busy organization. Not only does this bring about problem in finding the ideal individuals, it puts tension on new hires as can not endure the speed and also pressure that the organization expects them to bear.

Double Reporting Lines: Newbies discover this organizational society troublesome and also hard to deal with particularly as dotted line relationships are suggested to be weaker as a whole and unbiased setup as well as efficiency analysis is still done by the strong line manager. This suggests that newbies might shed clarity regarding their respective functions as well as objectives especially as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been capable as well as appropriate for the work yet the truth that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Fear & Job Insecurity: Concern as well as insecurity can be recognized as two major worries that Lewis would certainly be dealing with especially as the merger has currently be cancelled and also 2 elderly executives of the marketing department would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural change yet would certainly also have to prove herself in her brand-new role.

Inappropriate Administration Design of Leader: Lewis's management style as well as its conflict with the advertising department's duty can also be viewed as an OB challenge specifically as she has been made use of to dealing with issues in the procedures department where employees are instructed to focus on processes and obtain them right. The marketing division on the other hand can be viewed as a group of people that are used to being nurtured by Krasnow that concentrated a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, marketing, merchandizing and operations specifically over the allocation of the advertising and marketing mix can be determined as another OB problem. The advertising and marketing division does not share the same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also operations departments do not concur over the advertising mix allocation among one an additional either.

Fragmentation in Advertising Division: Fragmentation between the marketing and advertising divisions can be identified as an additional OB problem which might need further interest. The truth that the advertising and marketing areas in the marketing division are detached is stopping both divisions from getting from each other's experience and also know-how. Assimilation of advertising with merchandising as well as operations would certainly end up being more difficult if the marketing division itself is degenerated which can be one more prospective OB problem.

Apogee Health Care Analysis

Numerous concepts have actually been used to clarify the circumstances to get more quality concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are easy and also careless, have little ambition as well as resist adjustment. The tough version of this theory stressed threat, limited controls, threats as well as punishments. Over time it generates reduced performance, subtle sabotage and also competition (Deal, 2003). The scenario at Apogee Health Care is not entirely following Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which might eventually lead to a higher disposition of the monitoring in the direction of Theory X. Based on McGregor's promoted sight, which he called Concept Y, the crucial job of the monitoring is to set up business problems to ensure that people can achieve their own objectives best by routing their initiatives in the direction of organizational incentives. If people find no satisfaction in their work, the management would have little selection however to rely on theory X and also external control (Offer, 2003). Even while evaluating Lewis's administration design, concept X may have been suitable in the procedures division somewhat but the Marketing department would certainly require dependence on Theory Y so as to get the creative thinking and also creativity from the groups.

Tuckman's Teamwork Theory: As for Lewis's problem about bringing harmony in between the advertising and marketing division is worried, this would initially cause conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the initial stage of group growth, people might not bond, as they are busy finding their place in the group. By incorporating the marketing and advertising division's work, there might be the same preliminary detach which could bring about the 2nd stage of 'storming' where the groups test each other. However, it is just throughout the 3rd phase or 'norming' when they would certainly collaborate to share ideas prior to the team can cause synergy in the 4th phase 'performing'.

Bridges' Transition Model: As per William Bridge's concept (appendix 4), people are fairly uncomfortable with modification, which is evident by the scenario at Apogee Health Care The situation can be seen as a normal course of life if is studied based on Bridge's concept where he describes that individuals experience 3 phases of change when they experience adjustment. 'Closing, shedding and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they go into stage one therefore there may be emotions like sadness, unpredictability, frustration, rage, anxiety, rejection and disorientation.The circumstance at the advertising division of Apogee Health Care is comparable so Lewis can get comfortable with the concept that it is not amazing actions. In the 2nd phase, there may be a demand to link the void between the brand-new and old culture so Lewis may have to encounter this ordeal when Krasnow leaves. There may be reduced morale and reduced performance at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will certainly have to offer advice to the division to ensure that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this transition simpler by making Lewis obtain associated with the division a year prior to his actual separation. Based on Bridges' Design, phase three will certainly cause visibility to knowing, High energy and also dedication as people will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue pertaining to insecurity at the workplace has actually been triggered first of all by the change in management and secondly by the reality that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the value of 'security requires as being a reduced degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel protected as well as untouched' is at the 2nd degree of needs. Before a staff member can be made to develop psychologically, he needs to have his 'Physiological 'and 'Safety and security' requires satisfied. This indicates that unless the workers are made to feel safe about their existing work standing in Apogee Health Care they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Apogee Health Care Case Study

Implication of Analysis.

The OB analysis has considered various theories to comprehend how to deal with the existing situation at hand. The following three alternatives have been suggested to help Lewis take care of the business challenges in the marketing department. Each of these options has been suggested for relieving the transition required to bring the marketing division in accordance with the needs of the market as well as for making the cultural modification that would certainly comply with as soon as the current leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has experience in business-to-business advertising along with firm and also retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising as well as advertising and marketing features.

The advantage of this strategy is that it will integrate both functions while minimizing the need for hiring an additional source for advertising and marketing. Lewis would be heading the marketing department and also in any kind of case her replacement would certainly be required for the present role that she is carrying out. The downside of this choice is that exterior hiring might bring about animosity from interior personnel who may be eying the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Manufacturing: Offered the competitive pressures and high quality work needed from the ad agency, it is suggested that Lewis must allow the production device to be a different function from the advertising system. Given that many ad agency had these 2 features as separate systems, it makes more sense to comply with the standard. In addition to this, both features might be able to concentrate on their core activates a lot more successfully. The negative aspect of this approach would certainly be that added expenses would have to be borne for establishing up different production functions. Along with this, a manufacturing head might need to be hired which might enhance overheads for the organization.

Combination of Advertising with Procedures: Given that Lewis is currently taking treatment of the marketing as well as procedures departments concurrently; it makes sense to integrate the two features considering that she has actually been effectively taking care of both ends. The truth that Lewis has to adapt her administration design for the marketing division suggests that these two departments would be culturally varied.


An examination of the three options suggests that combination of advertising and operations would not be a possible step due to the substantial distinctions between the 2 divisions despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a beneficial relocation for the advertising and marketing department, the fact that it would suggest placing a 3rd feature under Lewis's wing suggests this ought to be avoided.

Activity Plan.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will divide herself from operations.

A democratic management style with staff member empowerment will certainly be utilized in marketing division.

Open door policy and also focus on cross department communication will be targeted at removing dissonance.

Backup strategy.

If the combination does not work out as planned, a contingency strategy would certainly follow which would divide the production function from the marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the production function will definitely be separated by placing it under an SVP production.