Ben S Bernanke In 2005 Case Study Analysis


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Ben S Bernanke In 2005 Case Study Solution

Background and Facts

Ben S Bernanke In 2005 an office supplies seller for little as well as moderate sized companies has recently been involved in preparing for a merger with its rival Home Deport, which has actually affected effectiveness levels in departmentswith the senior manager associated with legal complications put forth by the federal Profession Compensation. With the Advertising 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 future. With challenges in the type of a potential social change as well as low worker morale, the organization is in need of a full reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of Ben S Bernanke In 2005 is increasing unpredictability in the workplace bring about different obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting strategic choices because Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Trade Commission's intervention at the same time. Offered the truth that the store has a worldwide presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might be able to influence performance or calculated goals. Federal Trade Commission's antitrust fit versus the merging used up valuable time of the organization's elderly management suggesting that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Economic factors such as the appearance of local business in the worldwide scenario suggest that Ben S Bernanke In 2005 is flourishing in a setting where there is prospective development of organisations. Truth that store clients are mainly looking for workplace supplies for residence offices suggests that the market has a rising trend of business owners as well as house based services.

Social factors: Social fads in the economic climate show that consumers are searching for benefit as well as attractive costs. Market research shows how the consumer for Ben S Bernanke In 2005 does not have understanding concerning finding solutions which can use a mix of comfort as well as low costs.

Technical factors: Modern technology plays an important function in Ben S Bernanke In 2005's organisation technique specifically as the company is piloting Innovation centers which would certainly offer innovation sales as well as assistance in the type of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Actions issues can be seen in Ben S Bernanke In 2005's case as highlighted in this area.

Uneasiness about social adjustment: There is apprehension about a cultural change that would certainly happen once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with a lot of the staff members already showing unhappiness over this prospective step. This anticipated adjustment has actually created stress and anxiety in the workplace which has actually been coupled with the previous stress and anxiety of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of personnel that can match the stressful setting of a hectic company. Not only does this cause difficulty in finding the ideal people, it puts stress on new hires as can not hold up against the pace and pressure that the company expects them to birth.

Twin Coverage Lines: Newbies locate this organizational society cumbersome as well as tough to manage specifically as populated line relationships are suggested to be weaker as a whole and unbiased setting as well as performance assessment is still done by the strong line supervisor. This indicates that beginners might lose clearness regarding their respective duties and objectives specifically as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's placement came as a blow to her spirits. Lewis might have been capable and ideal for the work but the truth that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Job Insecurity: Concern and insecurity can be identified as 2 significant worries that Lewis would be taking care of specifically as the merging has now be terminated and also 2 elderly executives of the advertising and marketing department would be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining regarding a social modification yet would likewise need to confirm herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and also its conflict with the advertising and marketing division's role can also be viewed as an OB challenge particularly as she has been used to taking care of concerns in the operations department where employees are taught to concentrate on processes and also get them right. The marketing division on the other hand can be viewed as a team of people who are made use of to being nurtured by Krasnow that concentrated more on result than processes.

Interdepartmental Differences: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing and also operations respectively over the appropriation of the advertising and marketing mix can be recognized as an additional OB concern. The advertising department does not share the very same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix appropriation amongst one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be recognized as another OB issue which could require more interest. The fact that the advertising and marketing sections in the advertising and marketing department are separated is protecting against both divisions from gaining from each other's experience as well as proficiency. Assimilation of marketing with retailing and also procedures would certainly end up being more difficult if the marketing department itself is degenerated which can be an additional potential OB concern.

Ben S Bernanke In 2005 Analysis

Numerous theories have been utilized to explain the circumstances to obtain more clarity about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are easy as well as careless, have little aspiration and also withstand change. The scenario at Ben S Bernanke In 2005 is not entirely adhering to Concept X, it can be seen that new hires are discovering this atmosphere rather stressful which might eventually lead to a better disposition of the administration towards Concept X. Even while assessing Lewis's monitoring style, theory X may have been suitable in the procedures division to some extent yet the Marketing department would need dependence on Theory Y in order to obtain the creativity and originality from the groups.

Tuckman's Team effort Concept: As much as Lewis's issue about bringing consistency between the marketing and also marketing department is worried, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing and also advertising department's work, there might be the exact same initial detach which can lead to the second stage of 'storming' where the teams test one an additional.

When people are provided with modification, they enter phase one and so there may be emotions like sadness, unpredictability, stress, rage, anxiety, rejection as well as disorientation.The scenario at the advertising and marketing division of Ben S Bernanke In 2005 is comparable so Lewis can obtain comfortable with the idea that it is not extraordinary actions. It is throughout this phase that Lewis will certainly have to offer advice to the department so that they can locate a feeling of direction. It can be seen exactly how Krasnow has actually already made this change simpler by making Lewis obtain entailed in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the importance of 'protection requires as being a reduced level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel protected as well as out of risk' is at the 2nd level of requirements. Prior to a worker can be made to create emotionally, he needs to have his 'Physiological 'and also 'Safety' requires met.

SWOT Analysis for Ben S Bernanke In 2005 Case Study

Implication of Analysis.

The OB analysis has considered different concepts to recognize exactly how to handle the present scenario at hand. The adhering to three choices have actually been suggested to aid Lewis handle the organizational obstacles in the marketing division. Each of these options has been suggested for relieving the transition required to bring the advertising and marketing department in line with the demands of the market as well as for making the social adjustment that would follow when the current leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and Production functions. Assimilation of Advertising with Workflow.

Analysis of Alternatives.

Integration of Advertising & Advertising Functions: The internal marketing firm of Ben S Bernanke In 2005 is already toughness for the organization in terms of conserving up on expenses related to advertising as well as promotion. Because no new employment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising and marketing function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising in addition to agency and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this method is that it will integrate both functions while lowering the requirement for working with an added resource for advertising. Lewis would be heading the marketing division and in any type of case her substitute would certainly be required for the existing duty that she is carrying out. The drawback of this alternative is that exterior hiring might produce animosity from inner employees that might be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Given the affordable pressures as well as high quality work called for from the advertising firm, it is advised that Lewis ought to permit the manufacturing unit to be a different feature from the advertising and marketing device. Given that many advertising agencies had these two features as different devices, it makes even more feeling to comply with the standard.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is already taking treatment of the advertising as well as operations departments at the same time; it makes sense to integrate the two features since she has been effectively taking treatment of both ends. The truth that Lewis has to adapt her monitoring style for the marketing department suggests that these 2 divisions would certainly be culturally diverse.


An evaluation of the 3 choices shows that combination of advertising and also procedures would certainly not be a viable action as a result of the large differences between the two departments despite the fact that currently Lewis is dealing with both. While separation of the production feature may have been a favorable move for the advertising and marketing division, the reality that it would certainly mean putting a 3rd feature under Lewis's wing suggests this must be stayed clear of. The integration of the marketing department is the very best choice in regards to obtaining the optimal arise from the department. An action plan for this choice is talked about listed below.

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

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will certainly divide herself from operations.

An autonomous leadership design with worker empowerment will certainly be utilized in advertising and marketing division.

Open up door plan as well as emphasis on cross department communication will certainly be targeted at getting rid of disharmony.

Contingency strategy.

If the assimilation does not exercise as planned, a contingency plan would adhere to which would separate the manufacturing feature from the advertising and marketing function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will definitely be divided by positioning it under an SVP manufacturing.