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Arbor City Community Foundation Executive Education Version Case Study Solution

CASE ANALYSIS

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Arbor City Community Foundation Executive Education Version Case Study Solution

Background and Facts

Arbor City Community Foundation Executive Education Version a workplace supplies retailer for little and also moderate sized companies has lately been involved in planning for a merging with its competitor House Deport, which has impacted effectiveness degrees in departmentswith the senior manager associated with legal issues put forth by the government Profession Commission. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the near future. With challenges in the kind of a potential cultural change and reduced employee morale, the company needs a total reengineering initiative at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Arbor City Community Foundation Executive Education Version is increasing unpredictability in the working environment bring about various challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting calculated decisions because Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Commission's treatment in the process. Offered the reality that the shop has a worldwide presence with branches in UK, USA, Canada and also Germany, political consider each of these countries might be able to affect efficiency or strategic goals. Federal Trade Compensation's antitrust suit against the merging occupied important time of the company's elderly management suggesting that 'political' factors can have serious implications for a global company.

Economic Factors: Financial factors such as the emergence of local business in the global situation recommend that Arbor City Community Foundation Executive Education Version is prospering in an environment where there is prospective development of services. Reality that shop consumers are mainly looking for workplace products for house workplaces suggests that the market has a climbing pattern of business owners and also residence based services.

Social factors: Social fads in the economy reveal that consumers are seeking ease along with attractive prices. Marketing research shows how the customer for Arbor City Community Foundation Executive Education Version does not have awareness about finding services which can supply a mix of convenience and inexpensive.

Technological factors: Technology plays an important duty in Arbor City Community Foundation Executive Education Version's company strategy especially as the organization is piloting Modern technology centers which would provide modern technology sales and support in the type of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

A number of underlying Business Behavior problems can be seen in Arbor City Community Foundation Executive Education Version's case as highlighted in this section.

Concerns about social change: There is worry about a cultural adjustment that would happen as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the personnel already showing discontent over this prospective action. This expected adjustment has actually produced anxiety in the office which has been combined with the past stress of preparing the company for a potential merger with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of personnel that can match the stressful environment of a busy organization. Not only does this bring about problem in finding the ideal individuals, it places stress and anxiety on brand-new hires as can not withstand the rate as well as stress that the company anticipates them to birth.

Dual Reporting Lines: Beginners discover this business culture cumbersome and tough to manage specifically as dotted line connections are meant to be weaker in general and also unbiased setup as well as performance assessment is still done by the solid line manager. This means that novices can lose clearness concerning their respective roles and purposes specifically as populated line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been guessed that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been qualified and suitable for the work but the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Worry and insecurity can be recognized as 2 major worries that Lewis would be dealing with especially as the merging has actually now be terminated as well as 2 senior execs of the marketing division would certainly be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining about a cultural adjustment but would certainly additionally need to prove herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's administration style and its incompatibility with the advertising division's role can likewise be viewed as an OB challenge particularly as she has actually been made use of to managing issues in the procedures department where employees are educated to focus on processes and also get them right. The marketing department on the other hand can be seen as a team of people who are made use of to being nurtured by Krasnow who concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements between three divisions, advertising and marketing, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be determined as one more OB worry. The marketing division does not share the very same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allocation amongst one an additional either.

Fragmentation in Advertising Department: Disintegration between the marketing and advertising departments can be identified as one more OB issue which could need additional attention. The fact that the advertising and marketing areas in the marketing department are detached is preventing both divisions from acquiring from each various other's experience and also proficiency. Integration of advertising and marketing with merchandising as well as operations would certainly become more difficult if the advertising department itself is broken down which can be an additional potential OB concern.

Arbor City Community Foundation Executive Education Version Analysis

Numerous theories have been made use of to describe the scenarios to obtain further clarity concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that staffs are passive and careless, have little passion as well as withstand change. The scenario at Arbor City Community Foundation Executive Education Version is not totally following Concept X, it can be seen that brand-new hires are locating this atmosphere instead demanding which may eventually lead to a better inclination of the management in the direction of Theory X. Also while analyzing Lewis's monitoring style, concept X might have been ideal in the procedures department to some extent yet the Marketing department would call for reliance on Theory Y in order to obtain the imagination and creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's concern regarding bringing consistency between the advertising as well as advertising department is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing as well as advertising department's job, there may be the very same initial separate which could lead to the 2nd phase of 'storming' where the groups challenge one an additional.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), people are fairly awkward with change, which is apparent by the situation at Arbor City Community Foundation Executive Education Version The circumstance can be seen as a typical course of life if is examined based on Bridge's theory where he describes that people go through 3 stages of change when they experience modification. 'Closing, shedding and Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they get in phase one and so there may be feelings like unhappiness, uncertainty, disappointment, temper, concern, rejection and disorientation.The scenario at the marketing division of Arbor City Community Foundation Executive Education Version is comparable so Lewis can get comfy with the concept that it is not amazing behavior. In the 2nd phase, there might be a demand to link the gap between the new and also old society so Lewis might have to face this ordeal once Krasnow leaves. There might be reduced morale and also low efficiency at this phase which need to not be taken as a setback. It is during this phase that Lewis will need to provide advice to the division so that they can find an orientation. It can be seen how Krasnow has already made this change much easier by making Lewis obtain involved in the division a year before his real departure. Based on Bridges' Version, phase 3 will certainly cause visibility to learning, High power and also dedication as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'safety requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel protected and also out of threat' is at the second level of requirements. Before an employee can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Security' needs satisfied.

SWOT Analysis for Arbor City Community Foundation Executive Education Version Case Study



Effects of Analysis.

The OB analysis has actually looked at different concepts to understand just how to manage the current scenario handy. The complying with three options have been proposed to aid Lewis manage the business obstacles in the advertising and marketing department. Each of these choices has actually been suggested for reducing the transition needed to bring the advertising and marketing department in accordance with the needs of the marketplace and also for making the social adjustment that would comply with once the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Production features. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The in-house advertising firm of Arbor City Community Foundation Executive Education Version is already toughness for the organization in regards to conserving up on overheads connected to advertising and also promo. Because no brand-new employment has been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the marketing function, this is a positive chance for incorporating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has know-how in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing functions.

The advantage of this technique is that it will integrate the two features while decreasing the demand for working with an additional source for marketing. Along with this, Lewis would certainly be heading the advertising and marketing department and in any case her substitute would certainly be required for the existing function that she is carrying out. The drawback of this choice is that outside hiring may bring about resentment from inner employees that may be considering the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Production: Given the affordable stress as well as high top quality work required from the advertising and marketing firm, it is advised that Lewis must enable the manufacturing unit to be a separate feature from the advertising and marketing device. Since most advertising and marketing companies had these two features as separate systems, it makes more feeling to follow the norm.

Integration of Advertising And Marketing with Workflows: Since Lewis is currently dealing with the advertising and also operations departments all at once; it makes sense to incorporate both features considering that she has actually been effectively taking care of both ends. The fact that the two departments currently have major distinctions over allocation of sources suggests that this assimilation may have the ability to cause harmony particularly as Lewis would be heading both ends.However there are various downsides of this relocation specifically as it would place excessive burden over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the marketing division suggests that these two departments would certainly be culturally varied. In addition to this, Lewis might not have the ability to apply one kind of leadership style to both departments which might result in inadequacy in either among the two functions.

Referral.



An examination of the 3 choices indicates that integration of advertising and marketing as well as operations would not be a viable step due to the substantial differences between the two departments regardless of the truth that presently Lewis is dealing with both. While splitting up of the manufacturing function may have been a desirable move for the advertising and marketing department, the fact that it would certainly suggest placing a 3rd function under Lewis's wing means this need to be avoided.

Activity Plan.
Recommendation
Lewis will certainly take control of the duty of EVP 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 advertising and marketing.

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

Lewis will separate herself from procedures.

A democratic leadership style with staff member empowerment will certainly be used in marketing division.

Open door policy and focus on cross departmental interaction will certainly be targeted at eliminating disharmony.

Contingency strategy.

If the integration does not exercise as intended, a contingency strategy would certainly comply with which would certainly divide the manufacturing feature from the advertising and marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the production function will absolutely be divided by placing it under an SVP manufacturing.