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Bang Networks Inc Case Study Analysis

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Bang Networks Inc Case Study Analysis

Background and Facts

Bang Networks Inc an office materials retailer for little and also medium sized companies has lately been associated with preparing for a merging with its competitor House Deport, which has actually influenced efficiency degrees in departmentswith the senior supervisor involved in legal problems put forth by the federal Trade Payment. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With difficulties in the form of a potential social change and also reduced worker spirits, the organization needs a complete reengineering effort at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising department of Bang Networks Inc is boosting unpredictability in the working environment resulting in different obstacles 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 influencing tactical choices given that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Trade Commission's treatment while doing so. Given the fact that the store has an international presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may be able to affect efficiency or tactical goals. Federal Profession Payment's antitrust fit versus the merging occupied useful time of the organization's senior management suggesting that 'political' factors can have significant effects for an international organisation.

Economic Factors: Economic factors such as the emergence of local business in the international situation recommend that Bang Networks Inc is thriving in an atmosphere where there is possible growth of companies. Along with this, reality that shop consumers are mostly searching for workplace supplies for home offices recommends that the market has an increasing fad of entrepreneurs as well as home based services.

Social factors: Social fads in the economy show that consumers are trying to find benefit along with attractive costs. Marketing research shows how the customer for Bang Networks Inc does not have awareness about locating remedies which can provide a combination of ease and low costs.

Technological factors: Technology plays an essential duty in Bang Networks Inc's organisation technique especially as the company is piloting Innovation centers which would use innovation sales as well as assistance in the kind of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Actions concerns can be seen in Bang Networks Inc's case as highlighted in this area.

Uneasiness about cultural adjustment: There is uneasiness regarding a social change that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the team member already revealing unhappiness over this potential step. This anticipated change has actually created anxiety in the office which has actually been combined with the past anxiety of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a hectic organization. Not only does this lead to problem in locating the ideal people, it places anxiety on brand-new hires as can not withstand the rate and also pressure that the organization anticipates them to birth.

Dual Reporting Lines: Newbies find this business culture cumbersome and challenging to manage especially as populated line connections are implied to be weaker in general and also unbiased setting as well as efficiency examination is still done by the solid line supervisor. This indicates that novices might lose quality regarding their particular roles and objectives particularly as populated line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis might have been qualified and also proper for the task but the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Instability: Anxiety and also instability can be determined as two major worries that Lewis would certainly be managing especially as the merging has actually currently be terminated as well as 2 senior execs of the advertising division would be leaving. The whole duty of the department would be falling on Lewis's shoulders who would not just be in charge of brining about a cultural change however would certainly additionally have to show herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's monitoring style as well as its incompatibility with the advertising department's role can additionally be seen as an OB obstacle specifically as she has actually been made use of to handling concerns in the procedures division where employees are educated to concentrate on procedures as well as obtain them. The advertising department on the various other hand can be viewed as a group of people that are made use of to being supported by Krasnow who concentrated more on output than processes.

Interdepartmental Arguments: Interdepartmental differences in between three departments, advertising and marketing, merchandizing and also procedures specifically over the allotment of the marketing mix can be determined as another OB problem. The marketing department does not share the very same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and operations departments do not concur over the advertising mix allocation among one an additional either.

Fragmentation in Marketing Department: Disintegration between the advertising and marketing departments can be identified as an additional OB problem which might require further focus. The reality that the advertising and marketing sections in the advertising department are separated is stopping both divisions from acquiring from each various other's experience as well as proficiency. Integration of advertising with retailing as well as procedures would certainly become harder if the advertising and marketing department itself is degenerated which can be another possible OB issue.

Bang Networks Inc Analysis

Numerous theories have been used to clarify the circumstances to get further quality concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are easy as well as lazy, have little aspiration as well as stand up to adjustment. The tough variation of this theory highlighted coercion, limited controls, threats and punishments. With time it produces reduced performance, refined sabotage as well as rivalry (Bargain, 2003). Although the circumstance at Bang Networks Inc is not completely complying with Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which might at some point bring about a greater inclination of the monitoring towards Theory X. Based on McGregor's promoted view, which he called Theory Y, the essential task of the monitoring is to arrange organizational problems to ensure that people can achieve their very own objectives best by routing their initiatives towards organizational incentives. If people discover no complete satisfaction in their work, the management would certainly have little option however to count on concept X and exterior control (Deal, 2003). Even while examining Lewis's management design, concept X might have been suitable in the operations division to some extent yet the Advertising division would require dependence on Theory Y so as to get the imagination as well as creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's concern concerning bringing consistency in between the advertising and marketing department is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and marketing department's job, there might be the exact same initial disconnect which might lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Transition Version: As per William Bridge's concept (appendix 4), people are rather uncomfortable with adjustment, which is noticeable by the circumstance at Bang Networks Inc The scenario can be viewed as a typical program of life if is researched based on Bridge's theory where he describes that individuals undergo 3 phases of shift when they experience change. 'End, losing and also Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with change, they go into phase one and so there may be feelings like despair, unpredictability, irritation, anger, worry, rejection as well as disorientation.The scenario at the advertising and marketing department of Bang Networks Inc is similar so Lewis can get comfy with the concept that it is not amazing behavior. In the second stage, there might be a demand to bridge the gap in between the new and old society so Lewis might need to face this challenge as soon as Krasnow leaves. There might be low spirits and low performance at this phase which should not be taken as a setback. It is throughout this stage that Lewis will certainly have to offer guidance to the department to make sure that they can discover an orientation. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis get involved in the division a year before his actual separation. As per Bridges' Design, stage three will produce visibility to discovering, High energy and also commitment as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the importance of 'protection requires as being a reduced level demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel protected and out of danger' is at the 2nd degree of demands. Prior to a worker can be made to create mentally, he needs to have his 'Physiological 'and also 'Safety and security' needs fulfilled.

SWOT Analysis for Bang Networks Inc Case Study



Implication of Analysis.

The OB analysis has actually looked at different theories to comprehend exactly how to manage the present circumstance available. The complying with 3 choices have actually been recommended to assist Lewis manage the business difficulties in the marketing division. Each of these choices has actually been proposed for alleviating the shift needed to bring the marketing division in line with the requirements of the market and for making the cultural adjustment that would comply with as soon as the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting and also Manufacturing features. Assimilation of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging 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 work with Shapiro as an EVP for advertising and marketing to deal with both advertising and advertising functions.

The advantage of this approach is that it will incorporate both features while lowering the requirement for hiring an extra resource for marketing. In addition to this, Lewis would be heading the advertising division and also in any case her replacement would certainly be required for the existing function that she is performing. The negative aspect of this alternative is that outside hiring may bring about bitterness from inner workers who might be eying the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Production: Offered the affordable stress and top quality work called for from the advertising agency, it is suggested that Lewis must permit the manufacturing device to be a separate feature from the marketing system. Since a lot of ad agency had these two features as different devices, it makes more feeling to follow the norm. Both functions might be able to concentrate on their core activates much more successfully. However, the negative aspect of this method would certainly be that added expenses would have to be birthed for setting up separate manufacturing features. In addition to this, a manufacturing head may have to be employed which could raise expenses for the organization.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is currently looking after the advertising and marketing and also operations divisions concurrently; it makes sense to integrate both features because she has actually been effectively caring for both ends. The fact that both divisions already have major differences over appropriation of sources suggests that this combination might have the ability to bring about consistency especially as Lewis would be heading both ends.However there are various disadvantages of this move especially as it would put way too much problem over Lewis's shoulders. The truth that Lewis needs to adapt her management design for the marketing department recommends that these 2 divisions would be culturally diverse. Along with this, Lewis may not be able to use one sort of management style to both departments which might lead to inefficiency in either one of both functions.

Suggestion.



An assessment of the 3 choices suggests that assimilation of advertising and marketing and procedures would certainly not be a possible relocation due to the large differences between the 2 departments regardless of the reality that currently Lewis is dealing with both. While separation of the manufacturing feature may have been a beneficial step for the marketing division, the fact that it would certainly imply positioning a third feature under Lewis's wing indicates this ought to be avoided.

Action Strategy.
Recommendation
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will certainly remain part of marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

An autonomous leadership style with worker empowerment will certainly be made use of in marketing division.

Open up door plan and emphasis on cross department communication will be aimed at getting rid of disharmony.

Contingency plan.

If the assimilation does not work out as intended, a contingency strategy would comply with which would certainly separate the production feature from the marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. In that case the production feature will certainly be divided by putting it under an SVP production.