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Blue Ocean Or Stormy Waters Buying Nix Check Cashing Case Study Analysis

CASE ANALYSIS

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Background and Facts

Blue Ocean Or Stormy Waters Buying Nix Check Cashing an office supplies seller for small and also moderate sized services has lately been involved in preparing for a merger with its competitor House Deport, which has affected efficiency levels in departmentswith the senior supervisor involved in legal problems put forth by the federal Trade Payment. With the Advertising Head advancing the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With difficulties in the type of a potential social adjustment and also low staff member spirits, the company wants a full reengineering initiative at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing division of Blue Ocean Or Stormy Waters Buying Nix Check Cashing is enhancing unpredictability in the working environment resulting in various difficulties for the Jeannie Lewis that would certainly 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. needed to abandon its strategies of merging with Office Deport after the Federal Trade Commission's intervention in the process. Given the truth that the store has an international visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to affect performance or critical goals. Federal Trade Commission's antitrust suit against the merging used up beneficial time of the organization's senior administration recommending that 'political' factors can have major ramifications for a global company.

Economic Factors: Financial factors such as the development of small companies in the global circumstance recommend that Blue Ocean Or Stormy Waters Buying Nix Check Cashing is growing in an atmosphere where there is possible growth of businesses. Fact that store consumers are mainly looking for workplace materials for home offices recommends that the market has an increasing trend of business owners and also residence based companies.

Social factors: Social patterns in the economic situation show that customers are looking for convenience in addition to eye-catching prices. Marketing research demonstrates how the customer for Blue Ocean Or Stormy Waters Buying Nix Check Cashing lacks recognition concerning discovering services which can use a mix of ease as well as inexpensive.

Technical factors: Technology plays an essential role in Blue Ocean Or Stormy Waters Buying Nix Check Cashing's company technique particularly as the company is piloting Innovation centers which would certainly supply innovation sales and assistance in the type of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Behavior concerns can be seen in Blue Ocean Or Stormy Waters Buying Nix Check Cashing's case as highlighted in this section.

Worries about cultural change: There is concern about a cultural modification that would certainly take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with the majority of the employee already showing unhappiness over this potential relocation. This anticipated change has actually produced stress in the workplace which has actually been paired with the previous anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of employees that can match the difficult setting of a busy company. Not just does this lead to trouble in discovering the best people, it puts tension on brand-new hires as can not withstand the speed and stress that the organization anticipates them to bear.

Dual Reporting Lines: Newcomers find this organizational society cumbersome and also tough to cope with especially as dotted line connections are suggested to be weak as a whole and also unbiased setting and also performance assessment is still done by the strong line supervisor. This indicates that newcomers can shed clarity concerning their respective duties as well as purposes especially as dotted line coverage does not maintain them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been qualified as well as suitable for the job yet the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Task Instability: Fear and also instability can be determined as two major concerns that Lewis would certainly be dealing with especially as the merging has actually currently be terminated and also 2 elderly executives of the marketing division would be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural change yet would additionally need to prove herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's administration design and its incompatibility with the advertising department's function can also be viewed as an OB obstacle particularly as she has been used to dealing with problems in the procedures division where employees are instructed to focus on processes and also get them right. The advertising and marketing department on the various other hand can be seen as a group of individuals that are utilized to being nurtured by Krasnow that concentrated extra on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, advertising, merchandizing and also operations specifically over the appropriation of the advertising and marketing mix can be determined as one more OB concern. Although the advertising department does not share the very same vision as the various other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures departments do not agree over the advertising and marketing mix allowance among each other either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising divisions can be determined as another OB concern which can need additional interest. The truth that the advertising and marketing areas in the advertising and marketing department are separated is stopping both divisions from gaining from each other's experience and expertise. Integration of advertising with retailing as well as procedures would become more difficult if the marketing division itself is degenerated which can be one more possible OB concern.

Blue Ocean Or Stormy Waters Buying Nix Check Cashing Analysis

Different concepts have actually been made use of to clarify the scenarios to obtain additional clearness regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that staffs are passive as well as careless, have little passion and resist change. The scenario at Blue Ocean Or Stormy Waters Buying Nix Check Cashing is not completely complying with Concept X, it can be seen that new hires are discovering this setting rather difficult which may eventually lead to a greater disposition of the monitoring in the direction of Theory X. Also while examining Lewis's management design, concept X may have been ideal in the operations department to some degree yet the Marketing division would certainly call for reliance on Theory Y in order to get the creativity and also creativity from the groups.

Tuckman's Team effort Concept: As much as Lewis's issue 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 'Team effort Concept'. By incorporating the advertising as well as advertising division's work, there might be the exact same first disconnect which could lead to the second stage of 'storming' where the teams challenge one another.

When people are provided with change, they get in phase one and also so there might be emotions like despair, uncertainty, irritation, temper, anxiety, denial as well as disorientation.The circumstance at the advertising and marketing division of Blue Ocean Or Stormy Waters Buying Nix Check Cashing is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. It is throughout this stage that Lewis will certainly have to give support to the division so that they can locate a sense of instructions. It can be seen just how Krasnow has actually currently made this shift simpler by making Lewis obtain entailed in the division a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the importance of 'safety requires as being a reduced degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected as well as out of risk' is at the 2nd level of needs. Prior to an employee can be made to establish mentally, he requires to have his 'Physical 'and 'Security' requires fulfilled.

SWOT Analysis for Blue Ocean Or Stormy Waters Buying Nix Check Cashing Case Study



Ramification of Analysis.

The OB analysis has taken a look at various theories to comprehend how to manage the existing situation available. The complying with three alternatives have actually been suggested to aid Lewis take care of the organizational difficulties in the advertising department. Each of these alternatives has been suggested for relieving the shift needed to bring the marketing division in accordance with the needs of the market and also for making the cultural adjustment that would adhere to as soon as the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Production functions. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with company as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing as well as advertising and marketing functions.

The benefit of this approach is that it will certainly incorporate both functions while decreasing the demand for employing an additional resource for advertising. Lewis would certainly be heading the advertising division as well as in any type of case her replacement would be needed for the current duty that she is carrying out. The disadvantage of this alternative is that exterior hiring may bring about bitterness from interior personnel who might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Given the competitive pressures and excellent quality job needed from the advertising agency, it is suggested that Lewis needs to enable the manufacturing device to be a different feature from the advertising and marketing system. Considering that many advertising agencies had these two functions as different units, it makes more feeling to comply with the norm. Both functions may be able to concentrate on their core turns on extra successfully. Nevertheless, the disadvantage of this method would certainly be that additional costs would have to be birthed for establishing separate manufacturing functions. A production head may have to be worked with which might enhance overheads for the organization.

Integration of Advertising And Marketing with Workflows: Because Lewis is currently caring for the marketing and operations divisions at the same time; it makes sense to incorporate the two functions given that she has been successfully taking care of both ends. The fact that both divisions currently have significant differences over allotment of resources recommends that this integration may have the ability to produce consistency particularly as Lewis would certainly be heading both ends.However there are various disadvantages of this move especially as it would place excessive concern over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring style for the advertising division recommends that these 2 divisions would be culturally diverse. Lewis might not be able to use one type of leadership style to both divisions which might result in ineffectiveness in either one of the two functions.

Suggestion.



An assessment of the 3 choices indicates that combination of advertising and marketing and procedures would certainly not be a possible action due to the substantial distinctions in between the two departments despite the truth that currently Lewis is taking care of both. While splitting up of the manufacturing function may have been a desirable move for the advertising and marketing division, the reality that it would certainly suggest putting a 3rd function under Lewis's wing implies this must be avoided.

Activity Strategy.
Recommendation
Lewis will take control of the role of EVP Advertising and 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.

Production function will certainly continue to be part of marketing under advertising feature.

Lewis will separate herself from procedures.

A democratic management design with worker empowerment will be utilized in marketing department.

Open up door plan and focus on cross department communication will certainly be focused on getting rid of disharmony.

Contingency plan.

If the integration does not work out as prepared, a backup plan would comply with which would certainly separate the production feature from the advertising feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, 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.