Bang Networks Inc Case Study Analysis


Home >> Harvard >> Bang Networks Inc >>

Bang Networks Inc Case Study Solution

Background and Facts

Bang Networks Inc a workplace products retailer for small and medium sized services has just recently been associated with planning for a merging with its competitor House Deport, which has impacted effectiveness degrees in departmentswith the senior supervisor associated with lawful issues presented by the federal Trade Payment. With the Marketing Head putting forward the news of his separation 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 kind of a prospective social adjustment and low staff member spirits, the organization requires a complete reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising division of Bang Networks Inc is increasing uncertainty in the working environment resulting in different obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting calculated decisions given that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the fact that the shop has a global presence with branches in UK, USA, Canada and Germany, political factors in each of these countries may have the ability to influence efficiency or critical objectives. Federal Trade Payment's antitrust suit versus the merging took up beneficial time of the company's senior administration suggesting that 'political' factors can have significant implications for a worldwide company.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide circumstance recommend that Bang Networks Inc is flourishing in an atmosphere where there is prospective growth of services. Fact that store clients are primarily looking for workplace materials for house offices suggests that the market has an increasing pattern of business owners as well as home based services.

Social factors: Social trends in the economic climate show that customers are looking for convenience in addition to eye-catching costs. Marketing research shows how the client for Bang Networks Inc does not have recognition about discovering services which can provide a mix of convenience as well as inexpensive.

Technical factors: Innovation plays an essential function in Bang Networks Inc's business method especially as the organization is piloting Innovation facilities which would supply innovation sales and also support in the form of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and Symptoms.

Several underlying Business Behavior concerns can be seen in Bang Networks Inc's case as highlighted in this area.

Uneasiness regarding social change: There is worry concerning a cultural change that would occur once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the team member currently revealing discontent over this potential action. This anticipated modification has produced tension in the workplace which has actually been combined with the past anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is lack of personnel that can match the stressful environment of a hectic company. Not just does this lead to difficulty in locating the best people, it places anxiety on new hires as can not withstand the rate and also stress that the organization anticipates them to birth.

Twin Coverage Lines: Beginners locate this business society difficult as well as tough to handle specifically as dotted line connections are implied to be weak as a whole and also unbiased setting as well as efficiency evaluation is still done by the solid line supervisor. This means that beginners can lose clearness concerning their respective duties as well as objectives especially as populated line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's position came as a strike to her spirits. Lewis might have been capable as well as suitable for the job but the reality that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Work Instability: Fear and also insecurity can be identified as two significant worries that Lewis would be taking care of especially as the merging has actually now be terminated and also 2 senior execs of the marketing department would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would not simply be in charge of brining regarding a social modification but would additionally have to verify herself in her new role.

Incompatible Administration Design of Leader: Lewis's management style and its conflict with the marketing division's function can additionally be seen as an OB difficulty especially as she has been used to handling problems in the procedures division where employees are shown to focus on procedures as well as obtain them right. The advertising division on the other hand can be seen as a group of people that are made use of to being supported by Krasnow that focused much more on output than processes.

Interdepartmental Disputes: Interdepartmental arguments in between 3 departments, advertising, merchandizing as well as operations specifically over the allowance of the marketing mix can be recognized as one more OB worry. The advertising department does not share the same vision as the various other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not concur over the advertising mix appropriation among one an additional either.

Disintegration in Advertising Division: Fragmentation in between the advertising and marketing divisions can be recognized as an additional OB concern which might need more attention. The reality that the advertising and marketing areas in the advertising division are detached is avoiding both divisions from obtaining from each various other's experience and also know-how. Integration of advertising with retailing and operations would end up being more difficult if the advertising division itself is disintegrated which can be another possible OB problem.

Bang Networks Inc Analysis

Various theories have been utilized to describe the conditions to obtain more clearness concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that subordinates are easy as well as careless, have little aspiration and also withstand adjustment. The difficult variation of this concept stressed coercion, tight controls, threats as well as punishments. Gradually it generates low performance, refined sabotage as well as competition (Offer, 2003). Although the circumstance at Bang Networks Inc is not completely adhering to Concept X, it can be seen that brand-new hires are locating this setting rather demanding which might eventually result in a better inclination of the administration in the direction of Theory X. According to McGregor's supported sight, which he called Concept Y, the vital task of the management is to prepare business conditions to ensure that people can achieve their own objectives best by directing their initiatives towards organizational rewards. If individuals find no complete satisfaction in their work, the administration would certainly have little option but to rely upon theory X and also exterior control (Bargain, 2003). Also while evaluating Lewis's monitoring style, theory X may have been suitable in the operations department somewhat but the Advertising division would certainly call for reliance on Theory Y so as to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Theory: Regarding Lewis's concern about bringing consistency in between the marketing and advertising department is worried, this would originally bring about contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the first phase of group development, people may not bond, as they are hectic discovering their place in the team. By combining the marketing and advertising division's job, there may coincide first separate which can bring about the 2nd stage of 'storming' where the groups challenge each other. It is only throughout the third phase or 'norming' when they would certainly come with each other to share suggestions before the group can bring about synergy in the fourth phase 'performing'.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), individuals are rather awkward with adjustment, which is obvious by the situation at Bang Networks Inc The scenario can be seen as a regular course of life if is researched based on Bridge's concept where he describes that people undergo 3 phases of shift when they experience modification. 'Ending, losing and Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people are presented with modification, they enter stage one and so there might be emotions like despair, uncertainty, irritation, anger, concern, denial and also disorientation.The circumstance at the advertising and marketing division of Bang Networks Inc is comparable so Lewis can get comfortable with the suggestion that it is not phenomenal actions. In the 2nd phase, there might be a need to link the space in between the brand-new and also old society so Lewis may need to face this ordeal as soon as Krasnow leaves. There might be reduced spirits and reduced efficiency at this stage which should not be taken as a trouble. It is during this phase that Lewis will certainly have to provide advice to the department to ensure that they can locate an orientation. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get involved in the division a year prior to his actual separation. As per Bridges' Version, stage three will certainly bring about openness to understanding, High energy and commitment as people will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem pertaining to instability at the workplace has been activated firstly by the adjustment in monitoring as well as secondly by the reality that the merger will no longer be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the significance of 'security requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel secure and unharmed' is at the second degree of needs. Prior to a staff member can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' requires satisfied. This suggests that unless the personnel are made to really feel secure concerning their current work condition in Bang Networks Inc they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Bang Networks Inc Case Study

Implication of Analysis.

The OB analysis has actually considered various theories to comprehend exactly how to deal with the existing scenario available. The following three alternatives have actually been suggested to help Lewis deal with the organizational challenges in the advertising and marketing department. Each of these choices has actually been recommended for alleviating the shift needed to bring the advertising and marketing department in line with the demands of the market as well as for making the cultural modification that would comply with as soon as the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Assimilation of Advertising with Operations.

Assessment of Alternatives.

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

The benefit of this approach is that it will incorporate the two functions while reducing the requirement for hiring an added resource for advertising. Lewis would be heading the marketing department and also in any kind of case her replacement would certainly be needed for the current function that she is doing. The downside of this option is that external hiring may produce animosity from interior employees that might be eying the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Offered the affordable pressures as well as high quality job needed from the marketing firm, it is advised that Lewis needs to allow the manufacturing device to be a different feature from the advertising and marketing unit. Since most marketing agencies had these two functions as different systems, it makes even more sense to comply with the standard.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is already taking treatment of the advertising and also procedures divisions all at once; it makes feeling to integrate the 2 features considering that she has actually been successfully taking treatment of both ends. The fact that Lewis has to adjust her administration design for the advertising department suggests that these two divisions would certainly be culturally varied.


An analysis of the 3 options suggests that integration of advertising and procedures would certainly not be a practical relocation as a result of the huge distinctions between both departments despite the fact that presently Lewis is taking care of both. While splitting up of the production feature might have been a favorable move for the marketing department, the fact that it would certainly imply placing a 3rd feature under Lewis's wing indicates this need to be prevented as well. The combination of the advertising division is the best option in terms of obtaining the optimum arise from the department. An action prepare for this alternative is gone over below.

Activity Plan.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will divide herself from operations.

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

Open door plan as well as focus on cross departmental communication will be aimed at getting rid of disharmony.

Backup plan.

If the integration does not work out as prepared, a backup plan would certainly follow which would divide the production feature from the advertising and marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production function will certainly be separated by positioning it under an SVP manufacturing.