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Atandt Pension Fund Case Study Solution

Background and Facts

Atandt Pension Fund an office materials merchant for tiny and medium sized companies has actually lately been associated with preparing for a merger with its competitor Residence Deport, which has actually influenced performance degrees in departmentswith the senior manager involved in lawful issues put forth by the federal Profession Compensation. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With difficulties in the kind of a potential cultural change and also reduced worker morale, the organization is in need of a total reengineering initiative at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The potential social modification at the marketing department of Atandt Pension Fund is raising uncertainty in the working environment leading to different challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic decisions given that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Commission's intervention at the same time. Offered the reality that the shop has an international visibility with branches in UK, USA, Canada and Germany, political consider each of these nations may have the ability to impact performance or critical objectives. Federal Trade Compensation's antitrust fit versus the merger occupied important time of the company's elderly monitoring suggesting that 'political' factors can have significant implications for a global service.

Economic Factors: Economic factors such as the emergence of small companies in the global scenario suggest that Atandt Pension Fund is thriving in a setting where there is potential development of organisations. In addition to this, truth that shop customers are mainly looking for office products for office suggests that the marketplace has a rising fad of entrepreneurs and home based services.

Social factors: Social patterns in the economic climate reveal that clients are trying to find benefit along with eye-catching prices. Market research shows how the client for Atandt Pension Fund lacks awareness about finding solutions which can provide a mix of ease as well as affordable.

Technological factors: Modern technology plays a crucial role in Atandt Pension Fund's organisation approach particularly as the company is piloting Technology centers which would supply modern technology sales and also assistance in the type of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Habits problems can be seen in Atandt Pension Fund's case as highlighted in this section.

Uneasiness regarding social modification: There is concern about a social adjustment that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the personnel currently showing discontent over this potential move. This anticipated modification has actually created stress in the workplace which has actually been combined with the previous tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of employees that can match the stressful environment of a busy company. Not just does this cause trouble in finding the appropriate individuals, it puts tension on brand-new hires as can not withstand the pace and stress that the organization expects them to birth.

Dual Reporting Lines: Beginners locate this business society troublesome and hard to manage specifically as dotted line connections are meant to be weak generally as well as unbiased setting and also performance analysis is still done by the strong line supervisor. This means that novices might shed clarity regarding their particular duties and also purposes specifically as dotted line coverage does not keep them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been capable as well as suitable for the work yet the reality that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Anxiety and instability can be recognized as 2 major concerns that Lewis would be handling especially as the merging has actually currently be terminated and also 2 elderly execs of the advertising and marketing division would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural change yet would also have to verify herself in her new role.

Incompatible Management Design of Leader: Lewis's monitoring style and its conflict with the advertising and marketing division's duty can additionally be seen as an OB challenge especially as she has been made use of to dealing with concerns in the procedures division where personnel are shown to concentrate on processes as well as get them right. The advertising division on the various other hand can be seen as a group of people who are made use of to being supported by Krasnow that concentrated a lot more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disputes in between three divisions, marketing, merchandizing and also operations respectively over the allocation of the marketing mix can be recognized as one more OB worry. The advertising and marketing division does not share the exact same vision as the other two divisions pertaining to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the marketing and advertising departments can be determined as another OB concern which can need more attention. The truth that the marketing and advertising areas in the advertising department are detached is avoiding both divisions from gaining from each various other's experience and know-how. Integration of advertising with retailing as well as procedures would certainly come to be harder if the marketing department itself is disintegrated which can be an additional potential OB concern.

Atandt Pension Fund Analysis

Different theories have been made use of to discuss the conditions to get more clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are passive as well as lazy, have little ambition and stand up to modification. The situation at Atandt Pension Fund is not totally adhering to Concept X, it can be seen that new hires are discovering this atmosphere rather difficult which might eventually lead to a better disposition of the management in the direction of Theory X. Even while evaluating Lewis's monitoring style, concept X might have been suitable in the operations division to some degree however the Advertising and marketing department would certainly call for reliance on Concept Y in order to obtain the creative thinking and also creativity from the teams.

Tuckman's Team effort Concept: As for Lewis's problem about bringing consistency between the advertising and marketing department is concerned, this would originally result in clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the first stage of team growth, people might not bond, as they are busy finding their place in the team. By combining the marketing and advertising division's job, there might coincide preliminary separate which might cause the 2nd phase of 'storming' where the groups test each other. It is only throughout the 3rd phase or 'norming' when they would come with each other to share suggestions before the group can bring about synergy in the 4th phase 'doing'.

When people are provided with adjustment, they get in phase one as well as so there may be emotions like sadness, unpredictability, frustration, rage, worry, denial and also disorientation.The situation at the advertising division of Atandt Pension Fund is comparable so Lewis can obtain comfortable with the idea that it is not amazing behavior. It is throughout this stage that Lewis will have to offer guidance to the department so that they can discover a feeling of direction. It can be seen just how Krasnow has currently made this change less complicated by making Lewis get involved in the department a year before his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern pertaining to instability at the workplace has actually been triggered firstly by the change in administration and second of all by the fact that the merging will no more be initiated. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the significance of 'safety requires as being a lower degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected as well as unharmed' is at the 2nd level of needs. Prior to an employee can be made to create emotionally, he needs to have his 'Physical 'and also 'Safety and security' requires fulfilled. This shows that unless the workers are made to really feel secure about their present employment status in Atandt Pension Fund they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Atandt Pension Fund Case Study

Ramification of Analysis.

The OB analysis has actually considered numerous theories to understand exactly how to manage the present circumstance at hand. The following three alternatives have been recommended to assist Lewis manage the organizational obstacles in the marketing department. Each of these choices has actually been proposed for alleviating the transition needed to bring the advertising division according to the demands of the market and also for making the social adjustment that would adhere to as soon as the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Manufacturing features. Integration of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with firm and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both advertising as well as advertising and marketing functions.

The advantage of this technique is that it will certainly integrate both features while lowering the need for employing an extra source for advertising. Lewis would be heading the advertising department and also in any case her replacement would be needed for the current duty that she is doing. The negative aspect of this choice is that outside hiring might bring about bitterness from inner employees who might be eying the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the affordable pressures and also premium quality work called for from the ad agency, it is advised that Lewis must enable the manufacturing unit to be a separate feature from the marketing device. Given that a lot of ad agency had these 2 features as different systems, it makes more feeling to follow the norm. Both functions might be able to focus on their core activates more effectively. Nonetheless, the downside of this method would certainly be that additional costs would need to be birthed for establishing different production functions. Along with this, a manufacturing head might have to be hired which might raise expenses for the company.

Assimilation of Advertising And Marketing with Procedures: Considering that Lewis is already dealing with the advertising and marketing as well as procedures divisions simultaneously; it makes good sense to incorporate the two functions because she has been effectively dealing with both ends. The fact that both departments currently have significant differences over allotment of resources suggests that this integration may have the ability to bring about harmony specifically as Lewis would be heading both ends.However there are numerous negative aspects of this relocation specifically as it would certainly place way too much concern over Lewis's shoulders. The truth that Lewis has to adjust her management design for the advertising and marketing department recommends that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one kind of leadership design to both divisions which might result in ineffectiveness in either one of the two functions.


An examination of the 3 alternatives shows that integration of advertising and marketing as well as procedures would not be a possible move due to the vast differences in between the two divisions despite the fact that currently Lewis is taking care of both. While splitting up of the production function may have been a desirable action for the advertising division, the truth that it would certainly suggest putting a third function under Lewis's wing indicates this ought to be prevented.

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

Marketing and advertising features would certainly be combined.

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

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

Lewis will certainly separate herself from procedures.

A democratic leadership style with worker empowerment will certainly be made use of in marketing division.

Open up door policy and also focus on cross department interaction will certainly be focused on eliminating disharmony.

Contingency plan.

If the assimilation does not work out as planned, a backup strategy would adhere to which would certainly divide the production function from the marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising department without an SVP. In that case the manufacturing function will definitely be divided by placing it under an SVP production.