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Control Data Corp D Case Study Solution

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Background and Facts

Control Data Corp D an office products seller for little as well as medium sized companies has lately been associated with planning for a merger with its rival Home Deport, which has affected efficiency degrees in departmentswith the senior manager associated with lawful problems presented by the government Trade Compensation. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the future. With difficulties in the form of a potential cultural change and reduced worker spirits, the company wants a complete reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Control Data Corp D is raising unpredictability in the working environment bring about numerous challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions because Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Compensation's treatment at the same time. Given the reality that the shop has a global presence with branches in UK, USA, Canada and Germany, political factors in each of these nations may be able to affect performance or strategic objectives. Federal Trade Payment's antitrust suit versus the merging used up useful time of the company's elderly administration suggesting that 'political' factors can have severe implications for an international business.

Economic Factors: Economic factors such as the appearance of small companies in the global scenario suggest that Control Data Corp D is thriving in an atmosphere where there is possible growth of services. Fact that store clients are primarily looking for office supplies for home workplaces recommends that the market has a rising pattern of business owners and also home based companies.

Social factors: Social trends in the economic situation show that customers are searching for ease as well as eye-catching costs. Market research demonstrates how the customer for Control Data Corp D does not have understanding about finding remedies which can offer a mix of convenience as well as inexpensive.

Technological factors: Innovation plays an important duty in Control Data Corp D's organisation method especially as the company is piloting Modern technology facilities which would certainly supply technology sales as well as assistance in the type of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and Effects.

Numerous underlying Business Behavior concerns can be seen in Control Data Corp D's case as highlighted in this area.

Apprehensions concerning social modification: There is uneasiness concerning a cultural modification that would certainly happen once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the personnel currently revealing discontent over this possible action. This expected change has actually created tension in the work environment which has been coupled with the past tension of preparing the firm for a potential merging with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the demanding atmosphere of a hectic organization. Not only does this bring about trouble in locating the best people, it puts anxiety on new hires as can not stand up to the speed and pressure that the organization anticipates them to bear.

Twin Coverage Lines: Novices find this organizational society difficult and also hard to deal with especially as dotted line relationships are suggested to be weak in general as well as unbiased setting as well as efficiency analysis is still done by the solid line supervisor. This implies that newcomers can lose quality about their respective duties and also goals specifically as populated line reporting does not keep them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's placement came as a strike to her spirits. Lewis may have been capable as well as ideal for the work yet the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Task Insecurity: Fear and instability can be recognized as two major issues that Lewis would certainly be taking care of especially as the merger has actually now be cancelled and also 2 elderly execs of the advertising department would be leaving. The entire duty of the department would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a social change however would certainly also have to verify herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's management design and also its conflict with the marketing division's function can likewise be seen as an OB difficulty specifically as she has been made use of to taking care of concerns in the procedures division where workers are educated to concentrate on processes as well as get them. The advertising and marketing division on the other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow that concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental disputes between three divisions, marketing, merchandizing and operations specifically over the appropriation of the advertising mix can be recognized as an additional OB problem. Although the marketing department does not share the same vision as the other two departments relating to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the advertising mix allocation amongst each other either.

Disintegration in Advertising Department: Fragmentation between the marketing and advertising divisions can be identified as an additional OB concern which might need additional focus. The reality that the advertising and marketing areas in the marketing division are disconnected is preventing both divisions from gaining from each various other's experience as well as proficiency. Assimilation of advertising with retailing as well as operations would end up being more difficult if the marketing division itself is degenerated which can be one more potential OB problem.

Control Data Corp D Analysis

Numerous concepts have actually been used to describe the conditions to get additional clarity regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that juniors are easy as well as careless, have little passion and resist adjustment. The tough version of this theory highlighted browbeating, limited controls, hazards and also penalties. With time it produces low efficiency, refined sabotage as well as rivalry (Offer, 2003). Although the circumstance at Control Data Corp D is not completely complying with Concept X, it can be seen that brand-new hires are locating this environment instead difficult which might ultimately result in a higher inclination of the management towards Concept X. As per McGregor's promoted sight, which he called Concept Y, the crucial job of the management is to prepare business problems to make sure that individuals can attain their very own objectives best by routing their initiatives in the direction of organizational benefits. If individuals locate no contentment in their work, the management would certainly have little selection yet to rely on concept X as well as exterior control (Bargain, 2003). Even while evaluating Lewis's monitoring style, concept X may have appropriated in the operations division to some extent but the Advertising and marketing department would need reliance on Concept Y in order to get the imagination and also originality from the groups.

Tuckman's Team effort Theory: As much as Lewis's concern about bringing harmony between the advertising and marketing and also advertising and marketing division is concerned, this would at first lead to clash as talked about by Bruce Tuckman in his 'Teamwork Theory'. By integrating the advertising and also marketing department's work, there may be the same first disconnect which could lead to the second phase of 'storming' where the groups challenge one an additional.

Bridges' Shift Model: Based On William Bridge's concept (appendix 4), people are quite awkward with change, which is apparent by the circumstance at Control Data Corp D The scenario can be seen as a normal training course of life if is studied based on Bridge's theory where he discusses that people experience three phases of shift when they experience modification. 'Ending, shedding and also Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they get in stage one and so there may be feelings like unhappiness, unpredictability, frustration, anger, concern, rejection and also disorientation.The situation at the marketing department of Control Data Corp D is comparable so Lewis can obtain comfy with the concept that it is not extraordinary habits. In the second phase, there may be a demand to link the gap between the new as well as old culture so Lewis might need to face this ordeal once Krasnow leaves. There may be low morale as well as reduced performance at this stage which need to not be taken as a problem. It is during this stage that Lewis will certainly have to give guidance to the department to ensure that they can locate an orientation. It can be seen exactly how Krasnow has currently made this shift much easier by making Lewis obtain involved in the department a year prior to his real separation. As per Bridges' Model, stage 3 will produce visibility to learning, High energy and also dedication as people will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the relevance of 'security requires as being a lower degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe as well as out of risk' is at the second level of requirements. Before an employee can be made to develop psychologically, he needs to have his 'Physiological 'and also 'Security' requires satisfied.

SWOT Analysis for Control Data Corp D Case Study



Effects of Analysis.

The OB analysis has actually taken a look at various theories to comprehend just how to handle the existing circumstance at hand. The following three alternatives have actually been suggested to help Lewis deal with the business obstacles in the marketing department. Each of these options has actually been recommended for relieving the transition needed to bring the advertising and marketing department according to the needs of the marketplace as well as for making the cultural modification that would follow as soon as the existing leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Production features. Combination of Advertising And Marketing with Procedures.

Examination of Alternatives.

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

The advantage of this method is that it will certainly incorporate both features while minimizing the requirement for working with an additional resource for marketing. Lewis would certainly be heading the marketing department as well as in any kind of case her substitute would certainly be needed for the existing duty that she is carrying out. The negative aspect of this alternative is that external hiring might cause bitterness from inner workers that may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Production: Offered the competitive stress as well as premium quality work required from the ad agency, it is suggested that Lewis must enable the production system to be a different feature from the advertising and marketing system. Given that a lot of ad agency had these 2 features as different systems, it makes even more sense to comply with the norm. In addition to this, both features may be able to concentrate on their core turns on extra efficiently. Nonetheless, the negative aspect of this technique would certainly be that extra expenses would need to be borne for setting up different production functions. In addition to this, a manufacturing head might need to be worked with which can enhance overheads for the company.

Integration of Advertising And Marketing with Operations: Because Lewis is currently taking care of the advertising and marketing and procedures divisions simultaneously; it makes sense to integrate the two functions given that she has been efficiently looking after both ends. The fact that both divisions already have significant differences over allocation of resources recommends that this integration may have the ability to bring about harmony particularly as Lewis would be heading both ends.However there are numerous disadvantages of this step particularly as it would certainly place excessive concern over Lewis's shoulders. The reality that Lewis has to adjust her monitoring design for the advertising and marketing department recommends that these 2 divisions would certainly be culturally diverse. Along with this, Lewis may not have the ability to use one type of leadership design to both departments which could cause ineffectiveness in either one of the two features.

Recommendation.



An evaluation of the three choices shows that integration of marketing and operations would not be a practical move due to the large distinctions in between the 2 divisions regardless of the fact that currently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a desirable step for the advertising and marketing department, the truth that it would mean putting a third feature under Lewis's wing indicates this should be prevented.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will continue to be component of advertising and marketing under marketing feature.

Lewis will divide herself from operations.

An autonomous management design with worker empowerment will certainly be made use of in advertising and marketing department.

Open up door plan and focus on cross departmental communication will certainly be focused on removing dissonance.

Contingency strategy.

If the integration does not work out as intended, a backup strategy would comply with which would certainly separate the manufacturing feature from the advertising feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. In that case the production feature will certainly be divided by placing it under an SVP manufacturing.