Cause And Effect Performance Attribution In Commercial Real Estate Case Study Analysis


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Cause And Effect Performance Attribution In Commercial Real Estate Case Study Analysis

Background and Facts

Cause And Effect Performance Attribution In Commercial Real Estate an office products retailer for tiny and moderate sized companies has just recently been associated with planning for a merging with its rival Residence Deport, which has affected performance levels in departmentswith the elderly manager involved in lawful difficulties presented by the government Profession Payment. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With obstacles in the form of a prospective social modification as well as reduced worker morale, the organization requires a total reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing division of Cause And Effect Performance Attribution In Commercial Real Estate is boosting uncertainty in the working environment leading to numerous obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical decisions considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Commission's intervention in the process. Offered the truth that the store has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries may have the ability to impact efficiency or critical goals. Federal Trade Commission's antitrust fit versus the merging took up beneficial time of the organization's senior administration recommending that 'political' factors can have major ramifications for an international organisation.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide circumstance suggest that Cause And Effect Performance Attribution In Commercial Real Estate is growing in an environment where there is potential growth of companies. Fact that shop customers are mostly looking for office materials for house offices suggests that the market has an increasing pattern of entrepreneurs as well as residence based businesses.

Social factors: Social trends in the economy reveal that consumers are searching for benefit along with attractive prices. Marketing research shows how the customer for Cause And Effect Performance Attribution In Commercial Real Estate lacks recognition concerning finding solutions which can offer a mix of benefit as well as inexpensive.

Technological factors: Modern technology plays a crucial role in Cause And Effect Performance Attribution In Commercial Real Estate's service strategy particularly as the company is piloting Technology centers which would certainly supply innovation sales as well as support in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Behavior issues can be seen in Cause And Effect Performance Attribution In Commercial Real Estate's case as highlighted in this section.

Apprehensions concerning social modification: There is concern about a cultural adjustment that would take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the personnel currently revealing unhappiness over this prospective step. This expected change has developed stress and anxiety in the work environment which has been paired with the previous anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of personnel that can match the stressful setting of a fast-paced company. Not just does this result in difficulty in discovering the right individuals, it places tension on new hires as can not endure the speed as well as pressure that the organization anticipates them to bear.

Double Coverage Lines: Novices discover this business culture troublesome and also difficult to manage particularly as dotted line relationships are meant to be weaker as a whole and also objective setup and efficiency examination is still done by the strong line supervisor. This means that newcomers could lose quality concerning their particular duties and goals specifically as populated line reporting does not maintain them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been qualified and proper for the job but the fact that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Worry and insecurity can be recognized as two significant problems that Lewis would be handling particularly as the merger has actually now be cancelled as well as two senior executives of the marketing division would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders who would not just be in charge of brining about a cultural change yet would likewise have to show herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's management style as well as its conflict with the advertising and marketing division's function can additionally be viewed as an OB obstacle especially as she has actually been made use of to taking care of issues in the procedures division where workers are taught to concentrate on processes and also get them right. The marketing department on the other hand can be viewed as a team of individuals that are made use of to being nurtured by Krasnow that focused much more on result than processes.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, advertising, merchandizing and also procedures specifically over the allotment of the advertising and marketing mix can be recognized as another OB problem. Although the advertising division does not share the exact same vision as the various other 2 divisions regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allotment among one another either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the marketing and advertising divisions can be identified as another OB concern which could require additional focus. The reality that the marketing and advertising areas in the advertising and marketing department are detached is preventing both divisions from gaining from each other's experience and know-how. Assimilation of marketing with merchandising as well as operations would certainly become more difficult if the advertising division itself is degenerated which can be one more possible OB worry.

Cause And Effect Performance Attribution In Commercial Real Estate Analysis

Numerous theories have actually been used to clarify the conditions to get more clarity about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are passive and also lazy, have little passion and also resist adjustment. The circumstance at Cause And Effect Performance Attribution In Commercial Real Estate is not totally following Concept X, it can be seen that brand-new hires are locating this environment rather difficult which may ultimately lead to a better disposition of the monitoring towards Theory X. Even while evaluating Lewis's monitoring design, theory X might have been appropriate in the procedures department to some extent yet the Marketing division would certainly require dependence on Theory Y in order to obtain the imagination and creativity from the groups.

Tuckman's Synergy Concept: As much as Lewis's problem about bringing consistency between the marketing and also advertising and marketing division is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing as well as advertising department's work, there might be the very same first detach which can lead to the second phase of 'storming' where the groups challenge one another.

When people are presented with change, they go into phase one and so there may be emotions like sadness, unpredictability, stress, temper, anxiety, denial and disorientation.The circumstance at the advertising and marketing division of Cause And Effect Performance Attribution In Commercial Real Estate is similar so Lewis can get comfy with the suggestion that it is not remarkable behavior. It is during this stage that Lewis will certainly have to offer support to the division so that they can find a feeling of direction. It can be seen just how Krasnow has actually already made this shift simpler by making Lewis get entailed in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'security needs as being a reduced level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and secure as well as out of danger' is at the 2nd degree of demands. Before a staff member can be made to create mentally, he needs to have his 'Physiological 'as well as 'Safety and security' needs met.

SWOT Analysis for Cause And Effect Performance Attribution In Commercial Real Estate Case Study

Implication of Analysis.

The OB analysis has checked out numerous concepts to recognize how to handle the current scenario available. The complying with 3 choices have actually been recommended to assist Lewis manage the organizational difficulties in the marketing division. Each of these choices has actually been proposed for reducing the change needed to bring the advertising and marketing department in line with the needs of the market and for making the cultural modification that would follow as soon as the current leader leaves.

Integration of marketing and advertising features. Separating Adverting as well as Production functions. Integration of Advertising And Marketing with Operations.

Examination of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The internal advertising firm of Cause And Effect Performance Attribution In Commercial Real Estate is currently strength for the organization in terms of conserving up on expenses related to advertising and promo. Since no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a positive opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business advertising together with agency and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing and advertising functions.

The advantage of this technique is that it will incorporate the two features while decreasing the demand for employing an extra source for advertising and marketing. Lewis would be heading the advertising and marketing department and also in any kind of case her substitute would certainly be needed for the existing function that she is doing. The drawback of this option is that outside hiring might produce resentment from inner personnel who may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Production: Given the affordable stress and premium quality job needed from the ad agency, it is advised that Lewis needs to enable the manufacturing system to be a different function from the advertising device. Considering that the majority of advertising agencies had these two features as separate devices, it makes even more feeling to follow the norm. Both features may be able to concentrate on their core turns on more efficiently. The downside of this method would be that added expenses would have to be borne for setting up different manufacturing features. A manufacturing head might have to be worked with which can enhance expenses for the organization.

Assimilation of Advertising And Marketing with Procedures: Given that Lewis is already taking treatment of the marketing and procedures divisions simultaneously; it makes sense to incorporate the two functions considering that she has been efficiently taking care of both ends. The fact that Lewis has to adapt her administration style for the advertising division recommends that these two departments would certainly be culturally diverse.


An analysis of the three options suggests that assimilation of advertising as well as procedures would not be a possible move as a result of the huge distinctions in between the two departments despite the fact that currently Lewis is taking care of both. While splitting up of the production feature might have been a favorable action for the marketing division, the fact that it would suggest positioning a 3rd feature under Lewis's wing implies this must be avoided. The integration of the advertising division is the best alternative in terms of obtaining the optimum results from the division. An activity plan for this choice is gone over listed below.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will certainly continue to be part of advertising and marketing under advertising feature.

Lewis will separate herself from operations.

A democratic management style with staff member empowerment will be used in advertising department.

Open up door policy as well as focus on cross departmental interaction will certainly be focused on eliminating discord.

Contingency plan.

If the combination does not exercise as planned, a backup plan would adhere to which would separate the production feature from the advertising and marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing function will absolutely be divided by positioning it under an SVP manufacturing.