Austin Blakeley And Cambridge Llc Case Study Analysis


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Austin Blakeley And Cambridge Llc Case Study Solution

Background and Facts

Austin Blakeley And Cambridge Llc an office materials retailer for small and also medium sized services has actually lately been associated with planning for a merger with its rival House Deport, which has actually affected efficiency levels in departmentswith the elderly supervisor associated with legal problems put forth by the federal Profession Payment. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With obstacles in the type of a possible cultural modification as well as low employee morale, the company wants a full reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising division of Austin Blakeley And Cambridge Llc is enhancing uncertainty in the working environment leading to various obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated choices given that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention while doing so. Provided the fact that the store has a global presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to influence performance or critical objectives. Federal Profession Compensation's antitrust fit against the merger took up useful time of the company's senior monitoring suggesting that 'political' factors can have serious implications for an international company.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide scenario suggest that Austin Blakeley And Cambridge Llc is flourishing in an environment where there is possible growth of organisations. In addition to this, truth that store consumers are primarily searching for office products for office suggests that the marketplace has an increasing pattern of entrepreneurs and also home based businesses.

Social factors: Social trends in the economy reveal that customers are trying to find ease as well as eye-catching prices. Marketing research demonstrates how the customer for Austin Blakeley And Cambridge Llc lacks recognition concerning discovering solutions which can provide a combination of ease and inexpensive.

Technological factors: Technology plays an essential role in Austin Blakeley And Cambridge Llc's organisation technique particularly as the company is piloting Technology centers which would certainly provide innovation sales and support in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

Several underlying Business Habits issues can be seen in Austin Blakeley And Cambridge Llc's case as highlighted in this area.

Uneasiness about social modification: There is worry about a cultural modification that would occur as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with the majority of the team member currently showing unhappiness over this possible action. This anticipated change has actually developed stress and anxiety in the office which has actually been coupled with the previous stress of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is lack of employees that can match the difficult environment of a hectic company. Not just does this bring about problem in discovering the best individuals, it puts tension on new hires as can not hold up against the rate as well as pressure that the company anticipates them to birth.

Double Reporting Lines: Novices find this business society troublesome as well as challenging to deal with especially as populated line connections are indicated to be weaker generally and unbiased setup and also performance evaluation is still done by the strong line manager. This suggests that newcomers might lose clearness concerning their respective duties and objectives specifically as dotted line coverage does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's placement came as a blow to her spirits. Lewis may have been capable as well as proper for the job but the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Instability: Anxiety as well as instability can be recognized as 2 significant concerns that Lewis would be taking care of particularly as the merging has actually currently be terminated and also two senior execs of the advertising and marketing department would be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would not simply supervise of brining about a social change however would certainly likewise have to verify herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's management design as well as its incompatibility with the advertising department's function can additionally be seen as an OB challenge particularly as she has actually been used to dealing with issues in the procedures division where workers are shown to focus on procedures and obtain them right. The marketing department on the other hand can be seen as a team of individuals who are used to being nurtured by Krasnow who concentrated more on output than processes.

Interdepartmental Disputes: Interdepartmental differences in between three departments, advertising, merchandizing and also operations specifically over the allocation of the marketing mix can be identified as one more OB problem. Although the advertising division does not share the very same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not concur over the advertising mix allowance among each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be determined as another OB issue which might require additional attention. The fact that the advertising and marketing areas in the marketing division are detached is protecting against both departments from getting from each various other's experience and also proficiency. Combination of advertising and marketing with merchandising and also procedures would certainly come to be more difficult if the advertising and marketing department itself is disintegrated which can be one more prospective OB worry.

Austin Blakeley And Cambridge Llc Analysis

Different theories have actually been made use of to clarify the situations to obtain further clearness concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that subordinates are easy and lazy, have little aspiration as well as stand up to adjustment. The difficult version of this concept highlighted threat, tight controls, threats and penalties. In time it creates reduced productivity, subtle sabotage and also competition (Bargain, 2003). Although the scenario at Austin Blakeley And Cambridge Llc is not totally following Theory X, it can be seen that brand-new hires are discovering this environment rather demanding which might at some point result in a better disposition of the administration towards Concept X. As per McGregor's promoted sight, which he called Concept Y, the crucial job of the administration is to organize organizational problems to make sure that people can attain their very own goals best by routing their efforts towards business incentives. If individuals locate no fulfillment in their job, the administration would certainly have little option yet to depend on theory X as well as external control (Bargain, 2003). Even while assessing Lewis's monitoring style, theory X might have appropriated in the procedures department to some extent but the Marketing division would certainly require dependence on Theory Y so as to get the creative thinking as well as creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's problem concerning bringing harmony in between the advertising as well as advertising division is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and advertising and marketing division's job, there may be the same first detach which could lead to the 2nd phase of 'storming' where the groups test one an additional.

When individuals are offered with modification, they enter stage one as well as so there may be emotions like despair, uncertainty, frustration, rage, worry, denial and also disorientation.The circumstance at the advertising and marketing division of Austin Blakeley And Cambridge Llc is similar so Lewis can obtain comfortable with the idea that it is not amazing actions. It is throughout this phase that Lewis will have to offer support to the division so that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis get included in the division a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the relevance of 'protection requires as being a reduced level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel secure and out of risk' is at the second degree of needs. Before a staff member can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' requires fulfilled.

SWOT Analysis for Austin Blakeley And Cambridge Llc Case Study

Implication of Analysis.

The OB analysis has actually looked at various theories to understand just how to cope with the existing circumstance at hand. The complying with three choices have actually been suggested to help Lewis take care of the organizational challenges in the advertising and marketing division. Each of these options has actually been recommended for alleviating the transition needed to bring the advertising and marketing division in line with the needs of the marketplace and for making the social change that would certainly adhere to once the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and also Manufacturing features. Combination of Marketing with Procedures.

Examination of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The in-house marketing agency of Austin Blakeley And Cambridge Llc is already strength for the organization in terms of conserving up on expenses connected to marketing as well as promo. Because no new employment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising function, this is a positive possibility for integrating the marketing and advertising features. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has experience in business-to-business advertising together with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The benefit of this method is that it will certainly incorporate both functions while decreasing the need for employing an additional resource for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising department and also regardless her replacement would certainly be needed for the present duty that she is carrying out. The downside of this option is that exterior hiring might cause animosity from internal personnel who might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Offered the competitive pressures as well as high quality work required from the advertising agency, it is advised that Lewis should allow the production system to be a different function from the advertising device. Since many advertising agencies had these two features as different systems, it makes more sense to follow the norm. Along with this, both functions may have the ability to focus on their core activates more successfully. Nonetheless, the downside of this approach would be that additional costs would certainly need to be birthed for establishing different manufacturing functions. A production head might have to be hired which could raise expenses for the company.

Combination of Advertising And Marketing with Procedures: Since Lewis is already taking care of the advertising as well as operations departments concurrently; it makes sense to incorporate the 2 functions considering that she has actually been effectively taking treatment of both ends. The fact that Lewis has to adapt her management design for the advertising and marketing division suggests that these two divisions would certainly be culturally diverse.


An examination of the 3 options suggests that integration of advertising and marketing and operations would not be a possible action as a result of the substantial differences between both divisions despite the fact that presently Lewis is handling both. While splitting up of the production feature might have been a desirable move for the advertising division, the reality that it would mean placing a third function under Lewis's wing implies this ought to be avoided. The assimilation of the advertising and marketing division is the best alternative in terms of obtaining the optimal arise from the division. An activity plan for this choice is discussed listed below.

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

Marketing and advertising functions would be merged.

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

Manufacturing function will certainly remain part of advertising under marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management design with staff member empowerment will be made use of in advertising and marketing division.

Open door plan and focus on cross department interaction will be targeted at eliminating dissonance.

Contingency plan.

If the combination does not exercise as planned, a contingency plan would follow which would divide the manufacturing function from the advertising function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. In that case the manufacturing function will certainly be separated by positioning it under an SVP manufacturing.