Efficient Market Services August 1993 B1 Ems Management Case Study Solution


Home >> Harvard >> Efficient Market Services August 1993 B1 Ems Management >>

Efficient Market Services August 1993 B1 Ems Management Case Study Analysis

Background and Facts

Efficient Market Services August 1993 B1 Ems Management an office products store for little and also medium sized organisations has just recently been associated with planning for a merger with its rival Residence Deport, which has affected effectiveness levels in departmentswith the elderly supervisor involved in lawful difficulties presented by the government Profession Compensation. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the future. With difficulties in the kind of a possible cultural modification as well as reduced employee spirits, the company requires a complete reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising division of Efficient Market Services August 1993 B1 Ems Management is boosting uncertainty in the workplace resulting in different challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting strategic choices since Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's treatment in the process. Given the fact that the store has a global presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might have the ability to influence performance or calculated objectives. Federal Profession Commission's antitrust suit versus the merger took up beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have severe effects for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of local business in the worldwide circumstance recommend that Efficient Market Services August 1993 B1 Ems Management is thriving in a setting where there is potential development of businesses. Fact that shop customers are mainly looking for office materials for house workplaces recommends that the market has a rising pattern of business owners and also residence based businesses.

Social factors: Social patterns in the economy show that clients are searching for benefit along with attractive rates. Market research shows how the client for Efficient Market Services August 1993 B1 Ems Management lacks understanding about discovering solutions which can offer a mix of comfort and inexpensive.

Technical factors: Innovation plays an important role in Efficient Market Services August 1993 B1 Ems Management's organisation method particularly as the organization is piloting Modern technology centers which would certainly offer modern technology sales and also assistance in the type of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Habits problems can be seen in Efficient Market Services August 1993 B1 Ems Management's case as highlighted in this section.

Worries regarding cultural modification: There is worry concerning a social adjustment that would certainly occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the staff members currently revealing discontent over this possible relocation. This expected change has actually created anxiety in the office which has been coupled with the previous anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a hectic company. Not only does this cause problem in locating the ideal individuals, it puts stress on brand-new hires as can not hold up against the rate and also pressure that the organization anticipates them to bear.

Dual Reporting Lines: Newcomers find this organizational culture troublesome as well as tough to deal with especially as dotted line connections are implied to be weak generally and also unbiased setting as well as efficiency assessment is still done by the solid line manager. This suggests that newbies can shed clarity about their corresponding duties as well as goals particularly as dotted line reporting does not maintain them in direct interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been qualified as well as suitable for the work however the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Fear and also instability can be determined as 2 major issues that Lewis would certainly be taking care of specifically as the merging has actually now be cancelled and also two senior execs of the advertising division would be leaving. The whole obligation of the division would be dropping on Lewis's shoulders that would not just supervise of brining concerning a cultural modification however would certainly additionally have to confirm herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's management style as well as its incompatibility with the marketing division's function can likewise be seen as an OB obstacle specifically as she has been made use of to managing concerns in the operations division where personnel are taught to concentrate on processes and obtain them right. The marketing department on the various other hand can be seen as a team of people that are utilized to being supported by Krasnow that focused extra on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments in between 3 divisions, advertising, merchandizing and also procedures respectively over the allotment of the advertising mix can be recognized as another OB concern. Although the advertising and marketing department does not share the same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix allotment amongst each other either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as another OB problem which might need additional focus. The reality that the advertising and marketing sections in the advertising and marketing department are separated is avoiding both divisions from getting from each other's experience and competence. Assimilation of advertising with merchandising and also procedures would end up being more difficult if the advertising and marketing department itself is disintegrated which can be one more possible OB worry.

Efficient Market Services August 1993 B1 Ems Management Analysis

Numerous theories have been utilized to clarify the situations to obtain more clearness regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are easy and careless, have little passion and stand up to modification. The circumstance at Efficient Market Services August 1993 B1 Ems Management is not completely following Theory X, it can be seen that new hires are locating this setting rather difficult which may eventually lead to a better inclination of the monitoring towards Concept X. Even while assessing Lewis's administration design, theory X may have been ideal in the operations division to some extent however the Advertising and marketing division would certainly need dependence on Concept Y in order to obtain the creativity and originality from the groups.

Tuckman's Synergy Theory: As far as Lewis's problem concerning bringing consistency between the advertising and marketing department is concerned, this would originally result in contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, during the first phase of team advancement, individuals may not bond, as they are busy discovering their place in the group. By combining the advertising and marketing division's job, there might coincide first disconnect which could cause the 2nd stage of 'storming' where the groups challenge each other. Nonetheless, it is just during the 3rd stage or 'norming' when they would come together to share suggestions prior to the team can bring about synergy in the fourth phase 'executing'.

When people are presented with adjustment, they get in phase one and so there might be feelings like sadness, unpredictability, frustration, temper, anxiety, rejection and also disorientation.The circumstance at the advertising division of Efficient Market Services August 1993 B1 Ems Management is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary actions. It is throughout this stage that Lewis will have to offer guidance to the department so that they can discover a sense of direction. It can be seen how Krasnow has actually already made this shift simpler by making Lewis obtain included in the division a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has talks about the value of 'safety and security needs as being a lower degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure and also out of threat' is at the 2nd degree of requirements. Before a staff member can be made to create mentally, he needs to have his 'Physical 'and also 'Safety' needs met.

SWOT Analysis for Efficient Market Services August 1993 B1 Ems Management Case Study

Effects of Analysis.

The OB analysis has actually considered various concepts to understand exactly how to handle the existing situation at hand. The following 3 alternatives have actually been recommended to assist Lewis manage the business difficulties in the advertising division. Each of these choices has actually been recommended for relieving the change needed to bring the marketing division in line with the needs of the marketplace as well as for making the cultural change that would certainly adhere to when the present leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Manufacturing functions. Integration of Advertising And Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business marketing along with firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing as well as advertising functions.

The advantage of this strategy is that it will integrate the two features while lowering the need for hiring an additional source for advertising and marketing. In addition to this, Lewis would be heading the advertising department and in any case her substitute would be required for the existing function that she is executing. The drawback of this choice is that exterior hiring may cause resentment from inner workers that might be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Production: Offered the competitive stress and premium quality work required from the ad agency, it is suggested that Lewis ought to enable the manufacturing device to be a separate feature from the marketing system. Since a lot of ad agency had these two features as separate units, it makes more sense to follow the norm. Both features may be able to focus on their core turns on more efficiently. The drawback of this technique would be that added costs would certainly have to be borne for establishing up separate manufacturing features. A manufacturing head may have to be employed which can increase overheads for the company.

Combination of Marketing with Workflows: Since Lewis is already taking treatment of the advertising and operations departments simultaneously; it makes feeling to integrate the two functions given that she has been effectively taking treatment of both ends. The truth that Lewis has to adapt her management design for the advertising department suggests that these two departments would certainly be culturally varied.


An assessment of the three choices indicates that combination of advertising and marketing and procedures would not be a viable relocation due to the vast differences between both divisions despite the fact that currently Lewis is managing both. While splitting up of the manufacturing feature might have been a desirable move for the marketing division, the truth that it would certainly suggest putting a third feature under Lewis's wing means this should be avoided too. The assimilation of the marketing department is the best choice in terms of obtaining the ideal results from the division. An action prepare for this alternative is discussed listed below.

Action Plan.
Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will divide herself from operations.

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

Open door policy and also focus on cross departmental communication will be targeted at removing dissonance.

Backup strategy.

If the assimilation does not exercise as intended, a contingency plan would certainly follow which would certainly divide the manufacturing function from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. Because case the production feature will absolutely be separated by putting it under an SVP manufacturing.