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Berendsen Island Case Study Solution

Background and Facts

Berendsen Island a workplace products retailer for tiny and also medium sized services has just recently been associated with preparing for a merging with its rival House Deport, which has actually affected performance levels in departmentswith the senior manager associated with legal problems put forth by the government Profession Compensation. With the Marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With obstacles in the form of a potential cultural modification as well as reduced worker morale, the company wants a full reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Berendsen Island is boosting uncertainty in the workplace bring about different difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated decisions considering that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Offered the reality that the shop has an international existence with branches in UK, USA, Canada and Germany, political consider each of these countries may have the ability to influence efficiency or critical objectives. Federal Profession Payment's antitrust match versus the merger took up important time of the company's senior management recommending that 'political' factors can have serious effects for an international organisation.

Economic Factors: Economic factors such as the appearance of local business in the worldwide situation suggest that Berendsen Island is flourishing in a setting where there is prospective development of businesses. Reality that shop clients are mainly looking for office supplies for home workplaces recommends that the market has an increasing trend of entrepreneurs as well as house based businesses.

Social factors: Social trends in the economy reveal that consumers are searching for benefit in addition to appealing prices. Marketing research shows how the customer for Berendsen Island does not have understanding about discovering remedies which can supply a combination of convenience and also inexpensive.

Technological factors: Technology plays a crucial duty in Berendsen Island's service approach especially as the organization is piloting Innovation centers which would supply modern technology sales as well as assistance in the form of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Behavior problems can be seen in Berendsen Island's case as highlighted in this section.

Concerns regarding social adjustment: There is apprehension regarding a social adjustment that would certainly occur as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the staff members already revealing unhappiness over this potential relocation. This expected modification has actually produced stress and anxiety in the work environment which has actually been coupled with the past stress of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is shortage of personnel that can match the demanding setting of a fast-paced company. Not just does this result in trouble in finding the best people, it puts stress and anxiety on new hires as can not hold up against the rate and also pressure that the organization anticipates them to birth.

Twin Coverage Lines: Newcomers discover this business culture difficult and tough to cope with especially as populated line partnerships are suggested to be weak in general and objective setup and efficiency evaluation is still done by the solid line manager. This means that novices could shed clarity concerning their respective functions and purposes especially as dotted line coverage does not keep them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been qualified and appropriate for the work but the truth that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Fear as well as instability can be recognized as two major issues that Lewis would certainly be dealing with especially as the merger has now be terminated as well as 2 senior executives of the advertising division would certainly be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining concerning a cultural change however would certainly also have to prove herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's management design as well as its incompatibility with the advertising department's duty can additionally be seen as an OB challenge particularly as she has actually been made use of to handling concerns in the operations department where personnel are shown to concentrate on processes as well as get them. The advertising division on the various other hand can be seen as a group of people who are made use of to being nurtured by Krasnow that focused a lot more on output than procedures.

Interdepartmental Disputes: Interdepartmental differences in between 3 divisions, advertising and marketing, merchandizing and procedures specifically over the appropriation of the advertising mix can be identified as one more OB issue. The advertising and marketing division does not share the exact same vision as the other two departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations departments do not agree over the advertising mix allocation amongst one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the marketing and advertising departments can be determined as one more OB problem which can need further focus. The reality that the marketing and advertising sections in the marketing department are detached is preventing both divisions from obtaining from each other's experience as well as know-how. Combination of marketing with retailing as well as procedures would become more difficult if the advertising and marketing division itself is degenerated which can be another prospective OB concern.

Berendsen Island Analysis

Numerous concepts have been made use of to describe the circumstances to get additional clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors believe that subordinates are passive as well as careless, have little passion and resist modification. The tough version of this concept emphasized threat, tight controls, risks and also penalties. In time it produces low performance, refined sabotage as well as competition (Deal, 2003). The situation at Berendsen Island is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment rather stressful which may at some point lead to a greater disposition of the monitoring towards Concept X. Based on McGregor's advocated view, which he called Theory Y, the necessary task of the administration is to prepare organizational problems so that people can accomplish their own objectives best by directing their efforts in the direction of business benefits. If people locate no contentment in their work, the management would certainly have little choice however to depend on theory X and exterior control (Deal, 2003). Also while assessing Lewis's management design, concept X may have been suitable in the procedures division to some extent yet the Marketing division would certainly call for dependence on Theory Y so as to get the creativity and originality from the groups.

Tuckman's Synergy Concept: As much as Lewis's issue regarding bringing consistency between the advertising and marketing and also advertising division is worried, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising and also advertising division's work, there might be the exact same preliminary disconnect which can lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Change Model: As per William Bridge's concept (appendix 4), individuals are rather unpleasant with modification, which is evident by the situation at Berendsen Island The situation can be viewed as a regular program of life if is studied according to Bridge's theory where he clarifies that individuals go through three phases of transition when they experience adjustment. 'End, losing and Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they enter stage one and so there might be feelings like sadness, uncertainty, frustration, anger, fear, rejection and disorientation.The circumstance at the marketing division of Berendsen Island is comparable so Lewis can obtain comfortable with the suggestion that it is not phenomenal actions. In the second stage, there may be a demand to bridge the void between the brand-new as well as old culture so Lewis may need to face this ordeal when Krasnow leaves. There may be low spirits as well as low performance at this stage which ought to not be taken as a trouble. It is throughout this stage that Lewis will need to offer support to the department to ensure that they can find a sense of direction. It can be seen exactly how Krasnow has already made this shift easier by making Lewis get associated with the department a year before his real departure. According to Bridges' Version, stage three will certainly cause visibility to learning, High power and also dedication as individuals will accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue related to insecurity at the work environment has actually been set off firstly by the adjustment in administration as well as second of all by the truth that the merging will no longer be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the relevance of 'safety and security requires as being a reduced level requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel safe and secure as well as untouched' goes to the second degree of requirements. Prior to a worker can be made to create psychologically, he needs to have his 'Physical 'and also 'Safety and security' requires fulfilled. This suggests that unless the personnel are made to feel safe and secure concerning their current employment status in Berendsen Island they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Berendsen Island Case Study



Ramification of Analysis.

The OB analysis has considered different concepts to understand exactly how to manage the present scenario handy. The complying with 3 choices have been recommended to help Lewis take care of the organizational challenges in the marketing division. Each of these choices has been recommended for alleviating the shift needed to bring the advertising and marketing department according to the requirements of the market and also for making the social adjustment that would certainly comply with when the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and Manufacturing functions. Combination of Advertising with Procedures.

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has competence in business-to-business marketing along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both marketing and advertising functions.

The advantage of this approach is that it will integrate both features while lowering the requirement for hiring an additional source for marketing. In addition to this, Lewis would certainly be heading the marketing department and also regardless her replacement would certainly be needed for the current function that she is performing. The disadvantage of this choice is that exterior hiring might produce animosity from internal workers who might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Production: Provided the competitive pressures as well as high top quality work called for from the advertising and marketing agency, it is advised that Lewis should allow the production device to be a separate function from the marketing device. Considering that most advertising and marketing companies had these two functions as separate systems, it makes even more sense to adhere to the standard.

Integration of Advertising with Operations: Since Lewis is already caring for the marketing and also operations divisions concurrently; it makes good sense to integrate the two functions since she has been successfully taking care of both ends. The truth that both divisions already have significant differences over allocation of sources suggests that this combination might be able to produce consistency specifically as Lewis would certainly be heading both ends.However there are different downsides of this action especially as it would put way too much concern over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the advertising and marketing department recommends that these 2 divisions would be culturally diverse. Lewis may not be able to apply one type of leadership design to both departments which can result in ineffectiveness in either one of the 2 features.

Recommendation.



An assessment of the three choices indicates that integration of marketing and also procedures would not be a viable step due to the huge distinctions between the two departments although that currently Lewis is handling both. While separation of the manufacturing feature may have been a beneficial move for the advertising department, the reality that it would mean placing a 3rd function under Lewis's wing indicates this must be avoided as well. The integration of the marketing division is the very best alternative in regards to obtaining the optimum results from the department. An action plan for this choice is discussed below.

Activity Strategy.
Recommendation
Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will certainly divide herself from operations.

A democratic leadership style with staff member empowerment will certainly be made use of in advertising and marketing department.

Open door policy and also emphasis on cross department interaction will certainly be targeted at eliminating disharmony.

Contingency strategy.

If the assimilation does not work out as prepared, a backup plan would certainly follow which would separate the production feature from the advertising and marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing function will certainly be divided by positioning it under an SVP production.