Asante Teaching Hospital Activity Based Costing Case Study Analysis


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Asante Teaching Hospital Activity Based Costing Case Study Analysis

Background and Facts

Asante Teaching Hospital Activity Based Costing an office supplies seller for little as well as medium sized companies has lately been involved in preparing for a merger with its rival Residence Deport, which has actually influenced performance degrees in departmentswith the senior manager associated with legal problems put forth by the government Trade Commission. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With difficulties in the type of a prospective social modification and also reduced staff member morale, the company requires a complete reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The potential social adjustment at the advertising and marketing division of Asante Teaching Hospital Activity Based Costing is increasing uncertainty in the working environment resulting in different difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing critical decisions because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's intervention while doing so. Offered the reality that the store has an international presence with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may be able to influence efficiency or critical goals. Federal Trade Compensation's antitrust fit against the merger used up valuable time of the organization's elderly administration recommending that 'political' factors can have major effects for a global business.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide circumstance recommend that Asante Teaching Hospital Activity Based Costing is thriving in a setting where there is potential growth of organisations. Truth that store clients are mainly looking for workplace products for residence workplaces suggests that the market has a climbing pattern of business owners as well as home based companies.

Social factors: Social trends in the economy reveal that customers are looking for comfort along with appealing costs. Market research demonstrates how the client for Asante Teaching Hospital Activity Based Costing does not have understanding regarding finding solutions which can offer a combination of benefit and affordable.

Technical factors: Modern technology plays a vital function in Asante Teaching Hospital Activity Based Costing's business method particularly as the organization is piloting Technology centers which would certainly use innovation sales as well as assistance in the type of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues as well as Effects.

Several underlying Business Habits issues can be seen in Asante Teaching Hospital Activity Based Costing's case as highlighted in this section.

Uneasiness about cultural change: There is uneasiness about a cultural modification that would certainly take place once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the personnel already revealing unhappiness over this prospective relocation. This predicted adjustment has actually developed stress and anxiety in the work environment which has actually been combined with the previous tension of preparing the company for a potential merger with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of personnel that can match the demanding environment of a busy company. Not just does this lead to problem in locating the right individuals, it places stress on new hires as can not hold up against the rate and also pressure that the company expects them to bear.

Twin Coverage Lines: Beginners locate this organizational society cumbersome as well as hard to handle specifically as populated line relationships are indicated to be weak generally as well as objective setup and efficiency assessment is still done by the strong line manager. This implies that newcomers can shed quality regarding their respective roles and goals specifically as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's position came as a strike to her spirits. Lewis might have been qualified and also proper for the work yet the truth that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Work Instability: Worry and also insecurity can be recognized as two major worries that Lewis would certainly be handling specifically as the merging has actually currently be cancelled as well as two senior execs of the advertising department would certainly be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural change but would also have to prove herself in her brand-new duty.

Incompatible Administration Style of Leader: Lewis's monitoring style as well as its conflict with the advertising division's duty can likewise be viewed as an OB challenge especially as she has been utilized to managing issues in the operations division where personnel are educated to focus on procedures and also obtain them right. The advertising and marketing division on the various other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow who focused more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements between three departments, advertising and marketing, merchandizing and procedures respectively over the allocation of the advertising mix can be recognized as another OB problem. Although the advertising department does not share the same vision as the various other 2 divisions relating to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising mix allotment among each other either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing departments can be determined as another OB issue which can require more attention. The truth that the marketing and advertising sections in the marketing division are disconnected is protecting against both divisions from gaining from each various other's experience and proficiency. Combination of advertising and marketing with merchandising and procedures would certainly become harder if the advertising division itself is degenerated which can be one more possible OB problem.

Asante Teaching Hospital Activity Based Costing Analysis

Numerous concepts have been made use of to describe the scenarios to obtain more clearness regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are easy as well as lazy, have little passion and withstand modification. The tough version of this concept stressed coercion, tight controls, hazards as well as penalties. Over time it creates low productivity, subtle sabotage and rivalry (Bargain, 2003). The situation at Asante Teaching Hospital Activity Based Costing is not completely complying with Concept X, it can be seen that brand-new hires are discovering this environment rather difficult which may eventually lead to a better disposition of the monitoring in the direction of Theory X. Based on McGregor's advocated view, which he called Theory Y, the essential task of the monitoring is to set up business problems to ensure that people can attain their own goals best by guiding their efforts towards business rewards. If people discover no contentment in their job, the monitoring would have little option however to depend on concept X and exterior control (Offer, 2003). Also while examining Lewis's administration style, theory X may have been suitable in the operations division somewhat however the Advertising and marketing division would need reliance on Theory Y so as to get the creativity and creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's issue about bringing harmony in between the marketing and advertising division is worried, this would at first cause contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the first stage of team advancement, individuals may not bond, as they are hectic locating their place in the group. By incorporating the marketing and advertising division's work, there might coincide preliminary disconnect which could lead to the second stage of 'storming' where the teams challenge each other. Nonetheless, it is only during the third phase or 'norming' when they would certainly collaborate to share suggestions prior to the team can cause harmony in the 4th phase 'executing'.

When people are presented with adjustment, they get in phase one and so there may be feelings like unhappiness, uncertainty, stress, temper, fear, rejection and also disorientation.The situation at the advertising and marketing division of Asante Teaching Hospital Activity Based Costing is comparable so Lewis can get comfy with the idea that it is not amazing actions. It is during this phase that Lewis will certainly have to give assistance to the department so that they can locate a sense of instructions. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis obtain entailed in the division a year before his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to instability at the workplace has been set off to start with by the adjustment in management and also secondly by the reality that the merger will certainly no more be started. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the importance of 'safety requires as being a lower level requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected and also untouched' goes to the second degree of needs. Before a staff member can be made to develop emotionally, he needs to have his 'Physiological 'and 'Safety' needs satisfied. This indicates that unless the workers are made to feel safe and secure concerning their current work condition in Asante Teaching Hospital Activity Based Costing they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Asante Teaching Hospital Activity Based Costing Case Study

Effects of Analysis.

The OB analysis has considered various concepts to comprehend just how to cope with the existing scenario at hand. The complying with 3 options have actually been recommended to help Lewis take care of the organizational difficulties in the advertising department. Each of these alternatives has actually been proposed for relieving the shift needed to bring the advertising and marketing department in line with the demands of the marketplace and also for making the social modification that would certainly adhere to as soon as the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and Manufacturing functions. Integration of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both advertising as well as marketing functions.

The advantage of this technique is that it will incorporate the two features while decreasing the demand for working with an added source for advertising. Lewis would certainly be heading the marketing department as well as in any kind of case her replacement would certainly be needed for the existing function that she is executing. The negative aspect of this choice is that outside hiring might produce bitterness from interior employees that might be considering the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Manufacturing: Provided the affordable pressures and also high top quality work needed from the advertising agency, it is advised that Lewis must enable the manufacturing unit to be a separate feature from the marketing system. Given that most marketing firms had these 2 features as separate devices, it makes more sense to follow the norm.

Combination of Marketing with Workflows: Considering that Lewis is already caring for the marketing as well as procedures divisions all at once; it makes good sense to integrate the two functions given that she has actually been efficiently dealing with both ends. The fact that both divisions already have major differences over allocation of resources suggests that this integration may be able to produce harmony particularly as Lewis would certainly be heading both ends.However there are numerous negative aspects of this action specifically as it would certainly put too much burden over Lewis's shoulders. The fact that Lewis has to adapt her monitoring style for the advertising and marketing department recommends that these 2 divisions would certainly be culturally diverse. In addition to this, Lewis might not have the ability to apply one type of leadership design to both divisions which can lead to inadequacy in either among the two features.


An examination of the three choices indicates that combination of marketing and also operations would certainly not be a possible action due to the substantial distinctions between the two divisions regardless of the fact that currently Lewis is handling both. While separation of the manufacturing feature may have been a favorable move for the advertising and marketing division, the truth that it would certainly imply placing a 3rd feature under Lewis's wing suggests this need to be avoided.

Activity Strategy.
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production feature will certainly continue to be part of marketing under marketing function.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with employee empowerment will certainly be used in advertising department.

Open up door policy as well as emphasis on cross department communication will certainly be focused on eliminating dissonance.

Contingency plan.

If the combination does not exercise as prepared, a contingency plan would certainly adhere to which would certainly divide the production feature from the advertising and marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will definitely be separated by positioning it under an SVP manufacturing.