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Clear Channel 2006 Case Study Analysis

Background and Facts

Clear Channel 2006 an office materials retailer for tiny and also average sized companies has recently been associated with preparing for a merger with its rival Home Deport, which has actually impacted performance degrees in departmentswith the elderly manager involved in lawful difficulties presented by the government Trade Compensation. With the Advertising and marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With obstacles in the type of a prospective cultural modification as well as reduced employee spirits, the organization is in need of a complete reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the marketing department of Clear Channel 2006 is boosting unpredictability in the working environment bring about different difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting tactical decisions because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Payment's treatment in the process. Given the truth that the store has a global existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might have the ability to affect performance or tactical objectives. Federal Trade Payment's antitrust suit versus the merger occupied important time of the company's senior monitoring recommending that 'political' factors can have significant effects for an international service.

Economic Factors: Financial factors such as the introduction of small businesses in the global situation recommend that Clear Channel 2006 is prospering in an environment where there is potential development of services. Truth that store consumers are mostly looking for office materials for house workplaces recommends that the market has a climbing fad of entrepreneurs as well as home based services.

Social factors: Social fads in the economic climate reveal that customers are seeking comfort as well as appealing prices. Market research shows how the client for Clear Channel 2006 does not have understanding concerning discovering services which can use a combination of benefit and low costs.

Technical factors: Innovation plays an important function in Clear Channel 2006's business approach particularly as the organization is piloting Technology centers which would certainly supply innovation sales as well as support in the form of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Actions problems can be seen in Clear Channel 2006's case as highlighted in this section.

Worries concerning cultural change: There is uneasiness about a cultural change that would occur once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with a lot of the team member already showing discontent over this potential relocation. This anticipated change has created anxiety in the workplace which has been paired with the previous anxiety of preparing the company for a potential merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of personnel that can match the difficult environment of a fast-paced organization. Not just does this lead to difficulty in finding the right individuals, it places tension on brand-new hires as can not stand up to the speed and stress that the company anticipates them to birth.

Twin Coverage Lines: Novices locate this business society difficult as well as difficult to handle especially as dotted line partnerships are meant to be weaker generally and unbiased setup and efficiency assessment is still done by the strong line supervisor. This suggests that novices can lose clearness concerning their respective duties and also goals specifically as dotted line coverage does not keep them in straight interaction with the solid line managers.

Resentment 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 certainly take Krasnow's setting came as an impact to her spirits. Lewis might have been qualified and also ideal for the job however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Insecurity: Anxiety and insecurity can be identified as 2 significant worries that Lewis would certainly be dealing with specifically as the merger has currently be cancelled and two senior executives of the advertising and marketing department would be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a cultural modification yet would additionally have to verify herself in her new role.

Inappropriate Administration Style of Leader: Lewis's administration style and its conflict with the advertising division's function can likewise be viewed as an OB obstacle especially as she has actually been utilized to dealing with concerns in the procedures department where employees are taught to focus on procedures as well as obtain them right. The advertising and marketing division on the other hand can be viewed as a team of people that are used to being supported by Krasnow who concentrated much more on output than processes.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, marketing, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be identified as one more OB worry. The advertising department does not share the exact same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing divisions can be identified as an additional OB problem which could need further attention. The reality that the marketing and advertising areas in the advertising division are detached is preventing both divisions from acquiring from each various other's experience and also expertise. Assimilation of marketing with retailing and also procedures would come to be more difficult if the advertising and marketing department itself is broken down which can be one more potential OB problem.

Clear Channel 2006 Analysis

Different concepts have actually been made use of to discuss the circumstances to obtain additional quality regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that subordinates are easy and careless, have little passion and also resist modification. The scenario at Clear Channel 2006 is not completely following Theory X, it can be seen that new hires are discovering this setting instead difficult which may at some point lead to a greater disposition of the management in the direction of Concept X. Even while examining Lewis's administration style, concept X may have been appropriate in the procedures division to some level however the Advertising and marketing department would need dependence on Theory Y in order to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's concern about bringing consistency between the marketing and advertising division is worried, this would initially cause conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, throughout the initial stage of group growth, individuals may not bond, as they are hectic discovering their area in the team. By integrating the advertising and marketing division's work, there might coincide preliminary detach which can bring about the 2nd phase of 'storming' where the groups test one another. It is just throughout the third stage or 'norming' when they would certainly come with each other to share concepts prior to the team can bring about synergy in the 4th stage 'executing'.

Bridges' Change Design: As per William Bridge's concept (appendix 4), individuals are fairly uncomfortable with adjustment, which is apparent by the situation at Clear Channel 2006 The situation can be viewed as a typical course of life if is studied as per Bridge's theory where he describes that people go through three phases of change when they experience adjustment. 'Ending, shedding and Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they go into stage one and so there might be emotions like sadness, uncertainty, disappointment, anger, anxiety, denial as well as disorientation.The scenario at the advertising and marketing division of Clear Channel 2006 is similar so Lewis can get comfy with the suggestion that it is not amazing habits. In the second phase, there may be a requirement to connect the void in between the new as well as old culture so Lewis might need to face this challenge once Krasnow leaves. There may be low spirits as well as low productivity at this stage which need to not be taken as a trouble. It is throughout this phase that Lewis will have to provide assistance to the division to make sure that they can discover a sense of direction. It can be seen just how Krasnow has already made this shift much easier by making Lewis obtain associated with the division a year before his real separation. According to Bridges' Model, phase 3 will bring about visibility to understanding, High energy and also dedication as people will welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the value of 'security requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected and also out of risk' is at the second level of demands. Before a staff member can be made to develop psychologically, he requires to have his 'Physical 'and 'Security' needs satisfied.

SWOT Analysis for Clear Channel 2006 Case Study

Effects of Analysis.

The OB analysis has actually taken a look at numerous theories to understand exactly how to handle the existing scenario at hand. The following 3 alternatives have been recommended to help Lewis take care of the organizational challenges in the advertising division. Each of these choices has been recommended for relieving the transition needed to bring the advertising department in line with the needs of the marketplace and also for making the cultural change that would certainly follow once the present leader leaves.

Integration of advertising and marketing functions. Separating Adverting and also Production features. Assimilation of Marketing with Operations.

Examination of Alternatives.

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

The advantage of this approach is that it will incorporate the two features while decreasing the requirement for working with an added resource for marketing. Lewis would be heading the marketing division and also in any case her substitute would certainly be needed for the current duty that she is doing. The drawback of this alternative is that exterior hiring might bring about resentment from inner personnel who might be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Manufacturing: Provided the affordable pressures and high top quality job called for from the advertising agency, it is advised that Lewis should enable the production system to be a separate feature from the marketing unit. Considering that many advertising and marketing agencies had these 2 features as separate devices, it makes even more sense to follow the norm.

Combination of Advertising And Marketing with Procedures: Since Lewis is currently taking care of the advertising and marketing and also operations divisions all at once; it makes feeling to incorporate the two functions since she has actually been effectively taking care of both ends. The reality that Lewis has to adjust her administration design for the marketing department recommends that these two departments would certainly be culturally diverse.


An assessment of the three choices shows that integration of marketing and operations would not be a viable move because of the vast differences between the two departments despite the fact that currently Lewis is managing both. While separation of the manufacturing function may have been a favorable step for the marketing department, the fact that it would certainly mean placing a third feature under Lewis's wing suggests this need to be avoided too. The assimilation of the marketing department is the best choice in terms of obtaining the optimum arise from the division. An action plan for this alternative is gone over listed below.

Action Plan.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Manufacturing feature will stay component of marketing under advertising function.

Lewis will certainly separate herself from operations.

A democratic management style with worker empowerment will be utilized in advertising and marketing division.

Open door plan as well as focus on cross department interaction will be aimed at eliminating disharmony.

Contingency strategy.

If the assimilation does not work out as intended, a backup strategy would certainly adhere to which would certainly separate the production feature from the advertising and marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.