Cox Communications Inc 1999 Case Study Solution


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Cox Communications Inc 1999 Case Study Solution

Background and Facts

Cox Communications Inc 1999 a workplace supplies retailer for tiny and also moderate sized organisations has recently been associated with preparing for a merger with its rival Residence Deport, which has affected performance degrees in departmentswith the senior manager involved in legal problems presented by the federal Profession Compensation. With the Advertising Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With obstacles in the type of a potential social modification and low employee spirits, the organization is in need of a complete reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the marketing department of Cox Communications Inc 1999 is raising uncertainty in the working environment bring about numerous obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated decisions because Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Profession Commission's treatment in the process. Offered the truth that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may have the ability to affect efficiency or strategic objectives. Federal Profession Payment's antitrust suit versus the merger occupied useful time of the company's senior monitoring suggesting that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Financial factors such as the appearance of local business in the global scenario recommend that Cox Communications Inc 1999 is thriving in an environment where there is potential development of businesses. In addition to this, reality that store customers are primarily looking for office materials for home offices suggests that the market has an increasing trend of entrepreneurs and also home based businesses.

Social factors: Social trends in the economy reveal that customers are trying to find comfort as well as eye-catching prices. Marketing research shows how the client for Cox Communications Inc 1999 does not have understanding regarding locating solutions which can offer a mix of comfort and low costs.

Technical factors: Modern technology plays a vital duty in Cox Communications Inc 1999's service strategy especially as the company is piloting Innovation centers which would provide technology sales and assistance in the form of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Actions issues can be seen in Cox Communications Inc 1999's case as highlighted in this area.

Apprehensions regarding social adjustment: There is apprehension about a social adjustment that would happen once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the personnel already revealing unhappiness over this potential move. This expected modification has actually developed stress and anxiety in the workplace which has actually been coupled with the previous stress and anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of workers that can match the demanding setting of a busy company. Not just does this cause problem in locating the best individuals, it places anxiety on new hires as can not endure the speed as well as stress that the organization expects them to bear.

Double Coverage Lines: Beginners locate this organizational society cumbersome and also hard to handle particularly as dotted line partnerships are indicated to be weaker generally and unbiased setting as well as performance analysis is still done by the solid line supervisor. This means that newcomers can shed clearness regarding their particular roles as well as goals especially as populated line reporting does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been guessed that the latter would take Krasnow's position came as a blow to her spirits. Lewis might have been qualified and proper for the work yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Worry and instability can be recognized as 2 major worries that Lewis would be managing particularly as the merger has actually now be cancelled and also 2 senior execs of the marketing department would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural adjustment however would likewise have to confirm herself in her new role.

Incompatible Administration Design of Leader: Lewis's management design and also its conflict with the advertising department's role can additionally be seen as an OB obstacle especially as she has been utilized to taking care of issues in the procedures division where employees are educated to concentrate on processes and get them. The marketing division on the various other hand can be viewed as a team of individuals who are utilized to being supported by Krasnow that focused a lot more on result than procedures.

Interdepartmental Arguments: Interdepartmental arguments between 3 divisions, advertising, merchandizing as well as procedures specifically over the allocation of the marketing mix can be determined as one more OB worry. The advertising division does not share the exact same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix allowance among one an additional either.

Disintegration in Marketing Department: Fragmentation between the advertising and marketing departments can be determined as an additional OB concern which could require additional interest. The fact that the marketing and advertising areas in the marketing division are disconnected is preventing both divisions from getting from each other's experience and also know-how. Combination of advertising and marketing with merchandising and operations would come to be harder if the advertising and marketing division itself is disintegrated which can be one more prospective OB problem.

Cox Communications Inc 1999 Analysis

Various theories have been utilized to clarify the circumstances to obtain more clearness about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive as well as lazy, have little ambition as well as resist adjustment. The hard variation of this theory highlighted browbeating, tight controls, risks as well as penalties. In time it produces reduced productivity, subtle sabotage and rivalry (Bargain, 2003). The scenario at Cox Communications Inc 1999 is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment instead stressful which may at some point lead to a higher disposition of the monitoring in the direction of Concept X. According to McGregor's promoted view, which he called Theory Y, the crucial job of the administration is to set up business conditions to ensure that individuals can achieve their own objectives best by routing their initiatives towards business incentives. If individuals locate no complete satisfaction in their work, the administration would have little choice however to depend on theory X as well as external control (Deal, 2003). Even while examining Lewis's monitoring style, theory X might have been suitable in the procedures department somewhat but the Advertising and marketing division would certainly need dependence on Concept Y so as to get the creativity and also originality from the groups.

Tuckman's Synergy Concept: As for Lewis's concern about bringing consistency between the marketing and advertising division is concerned, this would initially bring about conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the initial stage of team advancement, individuals may not bond, as they are hectic locating their place in the team. By incorporating the marketing and advertising department's work, there might coincide first separate which can lead to the second phase of 'storming' where the teams challenge one another. It is just during the 3rd stage or 'norming' when they would come together to share suggestions before the team can bring around synergy in the fourth phase 'doing'.

When individuals are provided with adjustment, they enter stage one and also so there may be emotions like sadness, unpredictability, aggravation, rage, fear, rejection and disorientation.The situation at the marketing department of Cox Communications Inc 1999 is similar so Lewis can get comfortable with the concept that it is not phenomenal behavior. It is throughout this stage that Lewis will certainly have to offer guidance to the division so that they can locate a feeling of direction. It can be seen just how Krasnow has currently made this shift easier by making Lewis obtain included in the department a year before his actual separation.
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to instability at the work environment has been triggered to start with by the adjustment in monitoring and second of all by the reality that the merger will no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the significance of 'safety needs as being a lower level need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel secure and also out of danger' is at the second degree of needs. Before an employee can be made to establish psychologically, he requires to have his 'Physical 'as well as 'Safety and security' needs met. This suggests that unless the personnel are made to feel secure about their current work status in Cox Communications Inc 1999 they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cox Communications Inc 1999 Case Study

Effects of Analysis.

The OB analysis has actually taken a look at different concepts to understand how to manage the current scenario available. The following three options have actually been suggested to assist Lewis manage the organizational challenges in the advertising and marketing department. Each of these choices has been recommended for reducing the transition needed to bring the advertising and marketing division in line with the requirements of the market and also for making the social adjustment that would comply with when the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting as well as Manufacturing functions. Integration of Advertising with Procedures.

Examination of Alternatives.

Assimilation of Advertising & Advertising Functions: The in-house advertising company of Cox Communications Inc 1999 is currently strength for the company in regards to saving up on expenses associated with marketing as well as promotion. Since no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising feature, this is a favorable possibility for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business marketing along with firm and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising functions.

The advantage of this approach is that it will certainly incorporate the two features while reducing the requirement for hiring an additional resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division as well as regardless her replacement would be required for the existing function that she is performing. The drawback of this alternative is that external hiring may bring about bitterness from internal workers who may be considering the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Given the competitive pressures and also top quality job required from the ad agency, it is recommended that Lewis must enable the production system to be a separate function from the advertising and marketing unit. Considering that many advertising agencies had these 2 functions as separate devices, it makes even more sense to adhere to the standard. Both functions may be able to focus on their core activates extra successfully. Nevertheless, the disadvantage of this technique would certainly be that additional costs would certainly have to be birthed for setting up separate production features. Along with this, a manufacturing head may need to be worked with which can increase expenses for the company.

Integration of Marketing with Operations: Considering that Lewis is already taking treatment of the marketing and also operations departments at the same time; it makes sense to integrate the two functions because she has been efficiently taking treatment of both ends. The reality that Lewis has to adapt her management design for the advertising and marketing department suggests that these 2 departments would be culturally varied.


An examination of the three alternatives shows that combination of advertising as well as operations would certainly not be a feasible relocation due to the vast differences between the two divisions regardless of the truth that currently Lewis is dealing with both. While splitting up of the production feature might have been a desirable action for the advertising department, the truth that it would certainly indicate positioning a 3rd feature under Lewis's wing means this must be prevented.

Action Plan.
Lewis will certainly take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

Judith Shapiro will be worked with to take Lewis's place as SVP of advertising and marketing.

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

Lewis will certainly divide herself from procedures.

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

Open up door policy as well as emphasis on cross department communication will be aimed at getting rid of dissonance.

Contingency strategy.

If the assimilation does not work out as prepared, a backup plan would certainly comply with which would divide the manufacturing function from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing function will absolutely be separated by placing it under an SVP manufacturing.