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Clear Channel 2006 Case Study Analysis

CASE ANALYSIS

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Background and Facts

Clear Channel 2006 a workplace products seller for small and average sized services has actually lately been associated with preparing for a merger with its competitor Residence Deport, which has actually influenced effectiveness degrees in departmentswith the senior manager involved in legal problems presented by the federal Profession Commission. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With challenges in the kind of a prospective social change as well as reduced staff member spirits, the organization is in need of a complete reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the marketing department of Clear Channel 2006 is enhancing uncertainty in the working environment causing various difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting tactical choices since Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Payment's intervention at the same time. Offered the fact that the shop has a global visibility with branches in UK, USA, Canada and also Germany, political factors in each of these countries might have the ability to impact efficiency or tactical objectives. Federal Profession Commission's antitrust suit against the merger occupied useful time of the organization's senior administration suggesting that 'political' factors can have major effects for a global company.

Economic Factors: Financial factors such as the introduction of small companies in the international scenario recommend that Clear Channel 2006 is flourishing in a setting where there is possible development of companies. Fact that store consumers are mostly looking for workplace supplies for house offices recommends that the market has an increasing pattern of entrepreneurs as well as house based businesses.

Social factors: Social trends in the economy reveal that customers are looking for ease along with eye-catching prices. Market research demonstrates how the customer for Clear Channel 2006 does not have awareness regarding finding services which can use a mix of ease and low costs.

Technological factors: Technology plays a crucial duty in Clear Channel 2006's organisation method especially as the organization is piloting Modern technology centers which would offer modern technology sales and assistance in the kind of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Actions concerns can be seen in Clear Channel 2006's case as highlighted in this area.

Concerns concerning social modification: There is apprehension regarding a cultural change that would happen when Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with most of the personnel already showing unhappiness over this prospective step. This anticipated change has actually developed stress and anxiety in the workplace which has been coupled with the previous tension of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is shortage of personnel that can match the difficult atmosphere of a hectic organization. Not just does this result in trouble in discovering the appropriate individuals, it places stress on brand-new hires as can not stand up to the speed and also pressure that the organization anticipates them to bear.

Double Coverage Lines: Newbies locate this organizational culture troublesome and also challenging to manage specifically as populated line partnerships are meant to be weaker in general and also unbiased setting and performance evaluation is still done by the strong line supervisor. This implies that newbies could lose clearness regarding their particular roles and goals particularly as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified as well as proper for the work however the truth that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Instability: Worry and also insecurity can be identified as 2 major problems that Lewis would be dealing with specifically as the merging has currently be terminated and also two senior executives of the advertising division would certainly be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would not simply be in charge of brining about a social change yet would certainly likewise need to confirm herself in her new function.

Incompatible Administration Style of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing division's role can also be seen as an OB difficulty especially as she has actually been used to dealing with problems in the operations department where workers are instructed to focus on procedures and get them. The advertising and marketing department on the various other hand can be seen as a group of individuals that are made use of to being supported by Krasnow who focused more on result than procedures.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be identified as an additional OB problem. Although the advertising and marketing division does not share the very same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and procedures departments do not agree over the advertising mix allotment amongst each other either.

Disintegration in Advertising Division: Fragmentation between the marketing and advertising divisions can be recognized as one more OB problem which might need additional interest. The reality that the advertising and marketing areas in the advertising and marketing division are separated is stopping both divisions from obtaining from each other's experience and also proficiency. Combination of marketing with retailing and operations would become more difficult if the advertising and marketing division itself is disintegrated which can be another possible OB problem.

Clear Channel 2006 Analysis

Different concepts have been utilized to explain the situations to obtain further clearness regarding the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are easy and also careless, have little passion and also resist change. The difficult version of this concept stressed coercion, limited controls, hazards and also penalties. Over time it generates reduced efficiency, subtle sabotage and also competition (Offer, 2003). Although the scenario at Clear Channel 2006 is not totally adhering to Concept X, it can be seen that new hires are finding this environment instead stressful which may at some point result in a better inclination of the monitoring in the direction of Concept X. Based on McGregor's supported sight, which he called Concept Y, the necessary job of the administration is to arrange business conditions so that individuals can achieve their own goals best by routing their efforts in the direction of organizational rewards. If individuals find no contentment in their work, the administration would certainly have little selection yet to count on theory X as well as exterior control (Bargain, 2003). Also while assessing Lewis's monitoring style, concept X may have been suitable in the operations department to some extent however the Advertising and marketing department would certainly require reliance on Theory Y in order to get the imagination as well as creativity from the groups.

Tuckman's Teamwork Concept: As far as Lewis's concern concerning bringing consistency in between the advertising and marketing as well as marketing division is worried, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising and also advertising and marketing department's job, there may be the exact same preliminary disconnect which can lead to the 2nd phase of 'storming' where the teams test one an additional.

When individuals are offered with modification, they go into phase one and so there may be feelings like sadness, unpredictability, stress, temper, concern, rejection and also disorientation.The circumstance at the advertising division of Clear Channel 2006 is comparable so Lewis can obtain comfy with the concept that it is not phenomenal actions. It is throughout this phase that Lewis will have to provide support to the division so that they can discover a sense of instructions. It can be seen how Krasnow has actually currently made this transition simpler by making Lewis obtain involved in the department a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the importance of 'protection needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure and out of threat' is at the second degree of demands. Before an employee can be made to create mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs met.

SWOT Analysis for Clear Channel 2006 Case Study



Implication of Analysis.

The OB analysis has actually considered different concepts to understand exactly how to cope with the current situation available. The following three choices have actually been proposed to assist Lewis take care of the organizational obstacles in the advertising division. Each of these options has actually been proposed for reducing the transition needed to bring the advertising and marketing department in line with the needs of the marketplace and for making the social adjustment that would adhere to as soon as the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and Manufacturing features. Assimilation of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing along with firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both advertising as well as advertising and marketing functions.

The benefit of this strategy is that it will certainly integrate both features while reducing the requirement for employing an extra source for advertising and marketing. Lewis would be heading the advertising and marketing department and also in any case her substitute would be needed for the current function that she is doing. The negative aspect of this alternative is that outside hiring might produce bitterness from inner workers who might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Given the affordable stress and also excellent quality job called for from the advertising agency, it is recommended that Lewis should enable the manufacturing device to be a different function from the advertising and marketing device. Because a lot of advertising agencies had these 2 features as separate devices, it makes even more sense to adhere to the standard. In addition to this, both functions might have the ability to concentrate on their core triggers much more successfully. The downside of this technique would certainly be that added costs would have to be borne for setting up different manufacturing functions. A manufacturing head may have to be employed which can raise expenses for the organization.

Combination of Advertising And Marketing with Workflows: Considering that Lewis is already taking treatment of the advertising and marketing and also operations divisions all at once; it makes sense to incorporate the 2 features considering that she has been successfully taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising and marketing department recommends that these 2 departments would be culturally varied.

Suggestion.



An assessment of the 3 alternatives shows that integration of marketing and also procedures would certainly not be a viable relocation due to the large distinctions in between the 2 departments in spite of the reality that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a favorable relocation for the advertising and marketing department, the truth that it would certainly suggest placing a 3rd function under Lewis's wing implies this ought to be prevented.

Action Strategy.
Recommendation
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production feature will continue to be part of advertising under advertising feature.

Lewis will certainly separate herself from operations.

An autonomous management design with worker empowerment will be utilized in advertising and marketing department.

Open up door policy and emphasis on cross department interaction will be aimed at eliminating disharmony.

Backup strategy.

If the integration does not exercise as prepared, a contingency strategy would certainly follow which would separate the production feature from the marketing feature to lower 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 department without an SVP. Because case the production function will certainly be separated by putting it under an SVP manufacturing.