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Atandt Co 1983 Case Study Analysis

Background and Facts

Atandt Co 1983 an office supplies seller for little and also moderate sized organisations has actually recently been associated with preparing for a merger with its competitor House Deport, which has affected effectiveness degrees in departmentswith the elderly supervisor associated with lawful complications presented by the federal Profession Payment. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With challenges in the kind of a potential social adjustment as well as reduced worker spirits, the organization wants a full reengineering effort at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising and marketing department of Atandt Co 1983 is increasing unpredictability in the workplace resulting in numerous obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated choices since Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Payment's treatment while doing so. Provided the fact that the shop has a global visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may have the ability to impact performance or calculated objectives. Federal Profession Payment's antitrust fit against the merger used up important time of the organization's elderly management suggesting that 'political' factors can have significant ramifications for a global service.

Economic Factors: Economic factors such as the development of local business in the global circumstance recommend that Atandt Co 1983 is flourishing in an environment where there is possible development of companies. Fact that shop customers are primarily looking for office materials for residence workplaces recommends that the market has an increasing fad of business owners and home based companies.

Social factors: Social trends in the economic situation reveal that customers are trying to find ease as well as attractive rates. Market research shows how the customer for Atandt Co 1983 lacks awareness concerning discovering services which can supply a combination of convenience and low costs.

Technical factors: Modern technology plays an essential function in Atandt Co 1983's organisation technique specifically as the organization is piloting Innovation facilities which would certainly use technology sales and also support in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Behavior concerns can be seen in Atandt Co 1983's case as highlighted in this area.

Concerns concerning social change: There is uneasiness about a social change that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the personnel already showing discontent over this potential relocation. This predicted adjustment has produced tension in the office which has actually been paired with the previous stress and anxiety of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of employees that can match the stressful environment of a busy organization. Not only does this result in difficulty in finding the best individuals, it puts stress on new hires as can not endure the pace and pressure that the company expects them to birth.

Double Reporting Lines: Newbies find this organizational culture cumbersome as well as difficult to manage specifically as dotted line relationships are suggested to be weaker generally as well as unbiased setting and performance evaluation is still done by the strong line supervisor. This implies that novices can shed clarity about their corresponding roles and also purposes particularly as populated line reporting does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had been hypothesized that the last would take Krasnow's position came as a blow to her morale. Lewis might have been capable and also suitable for the job however the reality that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Task Insecurity: Fear as well as instability can be recognized as 2 significant issues that Lewis would be handling especially as the merger has actually currently be terminated as well as two elderly execs of the advertising and marketing department would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would not just be in charge of brining regarding a social change however would certainly also need to prove herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style and also its conflict with the marketing department's duty can additionally be seen as an OB difficulty specifically as she has been utilized to managing issues in the operations department where employees are taught to concentrate on processes as well as obtain them. The advertising department on the various other hand can be viewed as a team of people that are utilized to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Disagreements: Interdepartmental differences between 3 departments, advertising, merchandizing as well as procedures specifically over the allocation of the marketing mix can be identified as an additional OB issue. The advertising division does not share the very same vision as the other two divisions relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and operations divisions do not concur over the marketing mix allowance among one an additional either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing divisions can be determined as an additional OB concern which could require further attention. The fact that the marketing and advertising areas in the advertising and marketing division are detached is avoiding both departments from obtaining from each other's experience and know-how. Combination of marketing with retailing and operations would become harder if the advertising and marketing department itself is broken down which can be an additional possible OB problem.

Atandt Co 1983 Analysis

Various concepts have actually been utilized to describe the situations to get further clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that subordinates are passive and also careless, have little passion and also stand up to modification. The tough version of this theory highlighted threat, limited controls, hazards as well as punishments. With time it produces low efficiency, refined sabotage as well as competition (Bargain, 2003). Although the scenario at Atandt Co 1983 is not completely complying with Concept X, it can be seen that brand-new hires are finding this atmosphere instead demanding which may ultimately bring about a greater inclination of the administration towards Concept X. According to McGregor's supported view, which he called Theory Y, the crucial job of the management is to arrange business problems to make sure that individuals can accomplish their very own objectives best by routing their initiatives in the direction of business incentives. If people discover no complete satisfaction in their job, the administration would have little choice but to depend on theory X as well as external control (Bargain, 2003). Also while examining Lewis's management style, theory X may have been suitable in the operations division somewhat but the Advertising department would certainly call for dependence on Theory Y to get the imagination and creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's problem concerning bringing consistency between the marketing and advertising department is concerned, this would at first bring about contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the first stage of team growth, individuals might not bond, as they are active discovering their area in the group. By integrating the marketing and advertising division's job, there might coincide initial disconnect which might bring about the second phase of 'storming' where the groups test one another. It is just throughout the 3rd stage or 'norming' when they would come with each other to share suggestions before the group can bring around harmony in the fourth phase 'executing'.

When individuals are presented with change, they go into stage one and also so there may be emotions like unhappiness, uncertainty, stress, anger, fear, rejection and disorientation.The circumstance at the advertising department of Atandt Co 1983 is similar so Lewis can get comfy with the idea that it is not extraordinary behavior. It is during this phase that Lewis will have to offer advice to the division so that they can locate a feeling of direction. It can be seen exactly how Krasnow has actually already made this shift easier by making Lewis obtain entailed in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement power structure: The OB issue related to insecurity at the office has actually been set off to start with by the modification in monitoring and also second of all by the reality that the merger will certainly no more be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the value of 'protection needs as being a reduced degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and secure as well as untouched' is at the 2nd level of needs. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'and 'Safety and security' needs satisfied. This suggests that unless the personnel are made to really feel secure concerning their current work condition in Atandt Co 1983 they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Atandt Co 1983 Case Study



Ramification of Analysis.

The OB analysis has considered different theories to comprehend just how to deal with the current scenario handy. The following three options have been proposed to assist Lewis handle the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been recommended for relieving the shift needed to bring the advertising division in line with the needs of the marketplace and also for making the social change that would adhere to as soon as the existing leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and Manufacturing functions. Assimilation of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Advertising & Advertising Functions: The internal marketing agency of Atandt Co 1983 is already stamina for the organization in terms of saving up on overheads connected to advertising and marketing and promotion. Since no new employment has been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the marketing function, this is a positive possibility for integrating the advertising and marketing functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has experience in business-to-business advertising along with company and retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this technique is that it will integrate both features while minimizing the requirement for employing an extra source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising division as well as regardless her replacement would certainly be required for the present function that she is performing. The disadvantage of this alternative is that external hiring might cause bitterness from inner workers who may be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Manufacturing: Offered the affordable stress as well as high top quality work needed from the advertising company, it is recommended that Lewis must allow the manufacturing unit to be a separate function from the advertising unit. Since many advertising and marketing agencies had these two functions as different units, it makes even more feeling to adhere to the norm.

Integration of Marketing with Operations: Because Lewis is already taking treatment of the marketing and also operations departments at the same time; it makes sense to integrate the two features since she has been successfully taking treatment of both ends. The truth that Lewis has to adjust her administration design for the marketing division suggests that these 2 divisions would be culturally diverse.

Referral.



An evaluation of the three choices shows that assimilation of marketing and also operations would certainly not be a practical step because of the vast differences between the two divisions despite the fact that currently Lewis is managing both. While separation of the manufacturing feature might have been a desirable step for the advertising and marketing department, the fact that it would certainly indicate placing a third function under Lewis's wing implies this should be prevented. The integration of the advertising department is the best choice in terms of getting the optimum arise from the division. An action prepare for this alternative is talked about below.

Action Plan.
Recommendation
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Production feature will certainly stay part of marketing under advertising feature.

Lewis will certainly separate herself from procedures.

A democratic management style with worker empowerment will be made use of in advertising division.

Open up door policy and emphasis on cross department communication will be targeted at eliminating discord.

Contingency strategy.

If the combination does not exercise as planned, a contingency plan would follow which would divide the production function from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the production function will most definitely be divided by positioning it under an SVP manufacturing.