Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger Case Study Solution


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Background and Facts

Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger an office materials retailer for little as well as moderate sized services has recently been involved in preparing for a merging with its rival House Deport, which has actually affected efficiency levels in departmentswith the senior manager involved in legal problems presented by the government Profession Payment. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With obstacles in the type of a potential social change as well as low employee spirits, the company needs a total reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural change at the marketing department of Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger is increasing unpredictability in the workplace bring about different obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting strategic choices since Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Provided the truth that the shop has a global visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these nations might have the ability to influence efficiency or calculated objectives. Federal Trade Commission's antitrust suit against the merging took up useful time of the organization's senior management recommending that 'political' factors can have serious effects for a global company.

Economic Factors: Economic factors such as the introduction of local business in the global situation recommend that Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger is prospering in an environment where there is possible development of organisations. Truth that shop consumers are primarily looking for office materials for residence workplaces suggests that the market has a rising pattern of entrepreneurs and home based services.

Social factors: Social fads in the economic climate show that customers are looking for ease along with appealing prices. Marketing research demonstrates how the customer for Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger lacks recognition regarding discovering options which can supply a combination of comfort and inexpensive.

Technological factors: Technology plays a vital function in Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger's service strategy especially as the organization is piloting Innovation centers which would supply modern technology sales and assistance in the kind of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Habits issues can be seen in Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger's case as highlighted in this area.

Concerns about cultural modification: There is worry about a cultural modification that would occur once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the staff members currently showing unhappiness over this prospective relocation. This predicted change has actually created anxiety in the office which has actually been coupled with the past anxiety of preparing the firm for a potential merger with House Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of workers that can match the demanding atmosphere of a busy organization. Not just does this result in difficulty in discovering the best individuals, it places tension on new hires as can not stand up to the rate and stress that the organization expects them to birth.

Twin Coverage Lines: Novices discover this business society difficult and also difficult to deal with especially as populated line connections are implied to be weaker as a whole and also unbiased setup as well as performance evaluation is still done by the strong line manager. This means that newcomers can shed quality about their particular duties as well as objectives particularly as populated line reporting does not keep them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been capable and also appropriate for the job yet the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Job Instability: Worry and insecurity can be identified as 2 major worries that Lewis would certainly be dealing with specifically as the merging has actually now be cancelled and two elderly execs of the marketing division would be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would certainly not simply be in charge of brining concerning a cultural change but would certainly also have to show herself in her new function.

Incompatible Administration Style of Leader: Lewis's administration style and also its conflict with the advertising division's duty can additionally be seen as an OB difficulty specifically as she has been used to handling problems in the procedures department where workers are educated to focus on processes and also get them right. The advertising department on the other hand can be seen as a team of people who are made use of to being nurtured by Krasnow that focused a lot more on outcome than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, advertising, merchandizing and procedures respectively over the allotment of the advertising and marketing mix can be recognized as another OB problem. Although the advertising department does not share the same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also operations departments do not agree over the marketing mix appropriation among one another either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising departments can be recognized as one more OB concern which could require further attention. The reality that the advertising and marketing sections in the advertising division are detached is preventing both divisions from acquiring from each various other's experience and expertise. Combination of marketing with retailing and procedures would certainly come to be more difficult if the marketing department itself is broken down which can be one more prospective OB concern.

Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger Analysis

Various concepts have been made use of to discuss the scenarios to obtain further clarity about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are easy and careless, have little ambition and also resist change. The difficult variation of this theory highlighted browbeating, limited controls, risks and also punishments. In time it produces reduced efficiency, refined sabotage and rivalry (Bargain, 2003). Although the scenario at Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger is not entirely complying with Concept X, it can be seen that brand-new hires are finding this atmosphere rather difficult which may eventually result in a greater disposition of the monitoring in the direction of Theory X. Based on McGregor's advocated sight, which he called Concept Y, the essential task of the monitoring is to set up organizational conditions so that people can accomplish their own goals best by routing their efforts in the direction of business benefits. If individuals find no satisfaction in their job, the management would certainly have little option but to depend on concept X as well as external control (Offer, 2003). Even while examining Lewis's administration style, theory X might have appropriated in the procedures department to some extent but the Advertising division would certainly require reliance on Concept Y to get the imagination and creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's worry about bringing harmony between the advertising and marketing division is worried, this would at first bring about clash as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the preliminary stage of group development, individuals might not bond, as they are active locating their area in the team. By incorporating the advertising and marketing department's work, there may be the same preliminary detach which might lead to the 2nd phase of 'storming' where the teams test each other. It is only throughout the 3rd stage or 'norming' when they would certainly come together to share suggestions prior to the team can bring around harmony in the fourth phase 'executing'.

Bridges' Transition Design: As per William Bridge's concept (appendix 4), individuals are quite awkward with modification, which is apparent by the situation at Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger The situation can be viewed as a normal training course of life if is examined as per Bridge's concept where he clarifies that people go through 3 phases of transition when they experience change. 'Ending, losing and Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they go into phase one therefore there may be feelings like unhappiness, unpredictability, aggravation, temper, anxiety, rejection and disorientation.The scenario at the advertising division of Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger is comparable so Lewis can obtain comfy with the concept that it is not extraordinary actions. In the second phase, there might be a demand to link the space between the brand-new and old society so Lewis may need to face this ordeal as soon as Krasnow leaves. There might be reduced morale as well as low efficiency at this stage which must not be taken as an obstacle. It is throughout this stage that Lewis will certainly need to give assistance to the department so that they can locate a sense of direction. It can be seen just how Krasnow has currently made this change much easier by making Lewis obtain involved in the department a year prior to his actual departure. Based on Bridges' Design, stage three will certainly bring about openness to discovering, High power as well as dedication as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'protection requires as being a lower level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and also out of threat' is at the second degree of demands. Prior to a worker can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety' requires fulfilled.

SWOT Analysis for Cutting Costs In Financial Hard Times Two Massachusetts Towns Consider A Police Merger Case Study

Implication of Analysis.

The OB analysis has actually taken a look at different theories to understand just how to manage the existing situation available. The following 3 options have actually been suggested to help Lewis deal with the business obstacles in the marketing division. Each of these choices has actually been recommended for reducing the shift needed to bring the advertising department in accordance with the needs of the market and also for making the social adjustment that would certainly adhere to once the present leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Manufacturing features. Combination of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing along with agency and also retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and also advertising functions.

The benefit of this strategy is that it will certainly incorporate both functions while minimizing the requirement for hiring an additional source for advertising. Lewis would be heading the advertising and marketing division as well as in any kind of case her replacement would certainly be required for the existing role that she is performing. The downside of this alternative is that exterior hiring might cause resentment from interior personnel that might be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Provided the competitive pressures and high top quality job called for from the advertising firm, it is recommended that Lewis must enable the manufacturing unit to be a different function from the advertising system. Considering that a lot of advertising and marketing agencies had these two features as separate systems, it makes even more sense to follow the standard.

Combination of Advertising And Marketing with Workflows: Given that Lewis is already taking care of the marketing and operations divisions simultaneously; it makes sense to integrate the two functions since she has been efficiently taking care of both ends. The fact that Lewis has to adapt her management design for the advertising department suggests that these 2 departments would certainly be culturally diverse.


An assessment of the three options indicates that assimilation of advertising and marketing as well as operations would not be a possible relocation due to the vast distinctions in between the two departments in spite of the truth that currently Lewis is handling both. While separation of the production feature may have been a positive step for the advertising and marketing department, the fact that it would suggest putting a 3rd function under Lewis's wing suggests this must be avoided.

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

Marketing and advertising features would certainly be combined.

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

Manufacturing function will continue to be component of advertising under advertising function.

Lewis will separate herself from operations.

A democratic management design with staff member empowerment will certainly be utilized in advertising division.

Open up door plan as well as emphasis on cross departmental communication will certainly be targeted at eliminating dissonance.

Contingency plan.

If the assimilation does not work out as intended, a contingency plan would follow which would divide the manufacturing feature from the advertising and marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.