Digamem Inc Case Study Solution


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Digamem Inc Case Study Help

Background and Facts

Digamem Inc an office supplies seller for little and medium sized companies has actually just recently been associated with preparing for a merging with its competitor Residence Deport, which has influenced efficiency degrees in departmentswith the elderly supervisor associated with lawful problems presented by the government Trade Compensation. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the near future. With difficulties in the kind of a potential social change and also reduced worker spirits, the organization requires a complete reengineering initiative at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of Digamem Inc is boosting unpredictability in the workplace leading to numerous challenges 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 function in affecting calculated decisions given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment in the process. Offered the reality that the shop has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations may be able to impact performance or calculated objectives. Federal Profession Commission's antitrust suit versus the merger used up useful time of the company's senior monitoring suggesting that 'political' factors can have serious effects for a global company.

Economic Factors: Financial factors such as the emergence of local business in the global scenario suggest that Digamem Inc is growing in an environment where there is potential growth of companies. Truth that shop customers are primarily looking for office materials for residence workplaces suggests that the market has an increasing fad of entrepreneurs and home based businesses.

Social factors: Social trends in the economy reveal that consumers are trying to find ease along with eye-catching rates. Market research shows how the client for Digamem Inc lacks awareness regarding finding remedies which can use a combination of benefit and also affordable.

Technological factors: Modern technology plays a vital duty in Digamem Inc's company method especially as the company is piloting Technology facilities which would provide modern technology sales and also support in the type of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior issues can be seen in Digamem Inc's case as highlighted in this section.

Uneasiness concerning cultural modification: There is worry regarding a cultural adjustment that would take place when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the team member currently revealing unhappiness over this prospective action. This predicted modification has actually produced stress and anxiety in the work environment which has been paired with the previous stress and anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of personnel that can match the stressful atmosphere of a hectic company. Not only does this lead to difficulty in discovering the right people, it places stress and anxiety on new hires as can not withstand the speed and pressure that the organization expects them to bear.

Dual Reporting Lines: Novices locate this organizational society difficult and hard to handle particularly as populated line relationships are meant to be weaker as a whole and objective setting as well as performance analysis is still done by the strong line supervisor. This implies that newcomers might lose clarity concerning their respective duties and also goals particularly as populated line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified as well as proper for the work but the reality that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Concern & Work Instability: Worry and also insecurity can be identified as 2 major problems that Lewis would be handling specifically as the merger has now be terminated and also two elderly execs of the advertising and marketing department would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining regarding a social change but would certainly likewise need to confirm herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's administration style and its conflict with the marketing division's function can also be seen as an OB difficulty specifically as she has actually been used to handling issues in the operations department where employees are shown to concentrate on procedures and get them right. The marketing department on the other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow who concentrated much more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 departments, advertising, merchandizing and also operations specifically over the allowance of the advertising mix can be recognized as one more OB worry. The advertising and marketing department does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix appropriation amongst one another either.

Disintegration in Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as one more OB problem which might require additional attention. The reality that the marketing and advertising areas in the advertising division are disconnected is preventing both departments from obtaining from each various other's experience and also experience. Integration of advertising with merchandising and also procedures would certainly become more difficult if the advertising and marketing division itself is disintegrated which can be one more possible OB problem.

Digamem Inc Analysis

Various theories have been used to discuss the situations to get additional clarity regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are easy and also lazy, have little ambition and resist modification. The circumstance at Digamem Inc is not entirely adhering to Theory X, it can be seen that brand-new hires are finding this environment rather stressful which may eventually lead to a higher disposition of the administration in the direction of Concept X. Also while examining Lewis's administration style, theory X may have been appropriate in the procedures department to some extent yet the Advertising and marketing department would require reliance on Concept Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Synergy Concept: Regarding Lewis's problem about bringing harmony in between the advertising and marketing department is worried, this would initially result in clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the preliminary phase of group advancement, individuals may not bond, as they are active discovering their area in the group. By incorporating the marketing and advertising division's job, there might coincide preliminary disconnect which might bring about the 2nd stage of 'storming' where the groups challenge each other. It is just throughout the 3rd stage or 'norming' when they would come together to share concepts prior to the group can bring about harmony in the 4th stage 'doing'.

When individuals are provided with adjustment, they get in stage one as well as so there might be feelings like unhappiness, unpredictability, aggravation, anger, worry, denial and disorientation.The circumstance at the marketing department of Digamem Inc is comparable so Lewis can get comfortable with the idea that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to give assistance to the department so that they can discover a sense of direction. It can be seen just how Krasnow has currently made this transition less complicated by making Lewis get included in the division a year before his actual separation.
Vrio Analysis
Maslow's Demand power structure: The OB problem pertaining to instability at the office has actually been triggered firstly by the change in administration and also secondly by the truth that the merging will certainly no longer be started. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the importance of 'security needs as being a reduced degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and also safe' is at the second level of demands. Before a staff member can be made to develop psychologically, he needs to have his 'Physical 'and 'Safety and security' needs fulfilled. This shows that unless the employees are made to really feel safe concerning their current work standing in Digamem Inc they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Digamem Inc Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at numerous theories to comprehend just how to cope with the existing situation at hand. The adhering to three options have been suggested to aid Lewis manage the business challenges in the advertising division. Each of these alternatives has actually been recommended for alleviating the shift needed to bring the advertising division in accordance with the needs of the marketplace and also for making the social change that would comply with once the current leader leaves.

Combination of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Assimilation of Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both advertising and marketing as well as advertising and marketing functions.

The benefit of this strategy is that it will certainly integrate the two features while decreasing the demand for employing an extra resource for advertising. In addition to this, Lewis would be heading the advertising and marketing department as well as in any case her replacement would certainly be required for the existing role that she is performing. The negative aspect of this option is that exterior hiring might bring about resentment from inner personnel that may be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Provided the affordable stress and top quality job called for from the advertising agency, it is suggested that Lewis should permit the production device to be a separate function from the advertising unit. Considering that a lot of advertising agencies had these 2 features as different devices, it makes more feeling to adhere to the norm. Both features might be able to concentrate on their core activates a lot more effectively. However, the drawback of this technique would certainly be that extra expenses would have to be birthed for setting up separate production features. A production head may have to be hired which can enhance overheads for the organization.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is already taking treatment of the advertising and procedures divisions simultaneously; it makes feeling to incorporate the 2 functions considering that she has been efficiently taking care of both ends. The truth that Lewis has to adjust her administration style for the advertising division recommends that these 2 divisions would certainly be culturally varied.


An examination of the 3 choices suggests that combination of marketing as well as procedures would certainly not be a possible action due to the vast differences between the two departments although that presently Lewis is taking care of both. While splitting up of the production feature may have been a beneficial action for the advertising department, the fact that it would certainly imply putting a third function under Lewis's wing indicates this must be stayed clear of as well. The assimilation of the marketing department is the most effective choice in terms of obtaining the ideal arise from the department. An activity prepare for this option is discussed below.

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

Marketing and advertising functions would certainly be merged.

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

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

Lewis will certainly divide herself from procedures.

A democratic leadership design with staff member empowerment will certainly be used in advertising department.

Open door policy and emphasis on cross department interaction will be targeted at getting rid of dissonance.

Backup plan.

If the integration does not work out as intended, a backup plan would certainly follow which would divide the production feature from the marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing division without an SVP. Because case the production feature will definitely be separated by positioning it under an SVP production.