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Efficient Market Services August 1993 B2 Comdisco Ventures Case Study Solution

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Efficient Market Services August 1993 B2 Comdisco Ventures Case Study Solution

Background and Facts

Efficient Market Services August 1993 B2 Comdisco Ventures a workplace products merchant for little and also average sized services has recently been associated with preparing for a merger with its competitor Residence Deport, which has actually affected performance levels in departmentswith the elderly supervisor associated with lawful difficulties put forth by the government Trade Commission. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With challenges in the form of a prospective social modification as well as reduced employee morale, the company wants a complete reengineering initiative at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing department of Efficient Market Services August 1993 B2 Comdisco Ventures is enhancing unpredictability in the working environment leading to different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing critical choices since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Payment's intervention at the same time. Given the reality that the shop has a global presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may have the ability to influence performance or strategic objectives. Federal Trade Payment's antitrust suit against the merging took up important time of the organization's elderly management recommending that 'political' factors can have serious implications for a worldwide company.

Economic Factors: Financial factors such as the development of small businesses in the worldwide circumstance suggest that Efficient Market Services August 1993 B2 Comdisco Ventures is growing in a setting where there is prospective development of businesses. Fact that shop consumers are mainly looking for office materials for home workplaces suggests that the market has a climbing fad of entrepreneurs and house based services.

Social factors: Social trends in the economy reveal that clients are looking for benefit along with appealing costs. Market research shows how the client for Efficient Market Services August 1993 B2 Comdisco Ventures lacks understanding about locating options which can offer a combination of convenience and affordable.

Technical factors: Modern technology plays an important function in Efficient Market Services August 1993 B2 Comdisco Ventures's service technique especially as the organization is piloting Technology centers which would use innovation sales as well as assistance in the kind of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Habits problems can be seen in Efficient Market Services August 1993 B2 Comdisco Ventures's case as highlighted in this section.

Worries about social modification: There is apprehension concerning a social adjustment that would take place once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the staff members currently showing discontent over this possible step. This predicted modification has actually developed stress and anxiety in the office which has been coupled with the past stress and anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of employees that can match the difficult setting of a busy organization. Not only does this lead to trouble in discovering the best individuals, it puts stress on new hires as can not withstand the speed as well as pressure that the company anticipates them to birth.

Dual Coverage Lines: Newbies discover this organizational culture troublesome as well as hard to handle particularly as populated line relationships are suggested to be weak as a whole as well as unbiased setup and efficiency assessment is still done by the solid line manager. This indicates that beginners could shed quality regarding their particular duties and goals specifically as populated line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's placement came as a blow to her morale. Lewis might have been capable as well as ideal for the work yet the truth that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Concern & Work Insecurity: Anxiety and insecurity can be determined as 2 major issues that Lewis would certainly be dealing with specifically as the merger has actually now be terminated as well as two senior executives of the advertising division would certainly be leaving. The entire duty of the division would be falling on Lewis's shoulders that would not just supervise of brining about a social change however would likewise need to confirm herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's administration design and 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 managing concerns in the procedures department where personnel are educated to focus on processes as well as obtain them right. The advertising department on the other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow that concentrated much more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements between three departments, advertising and marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be determined as one more OB worry. Although the advertising and marketing department does not share the very same vision as the various other two departments pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not concur over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing divisions can be identified as an additional OB issue which could require additional attention. The truth that the advertising and marketing areas in the marketing department are separated is avoiding both divisions from obtaining from each other's experience and competence. Integration of advertising with retailing and operations would certainly become more difficult if the marketing department itself is disintegrated which can be an additional prospective OB problem.

Efficient Market Services August 1993 B2 Comdisco Ventures Analysis

Numerous theories have been utilized to explain the circumstances to obtain more clearness regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are easy and careless, have little aspiration as well as resist modification. The situation at Efficient Market Services August 1993 B2 Comdisco Ventures is not completely complying with Theory X, it can be seen that brand-new hires are finding this atmosphere rather difficult which may eventually lead to a better inclination of the monitoring in the direction of Concept X. Even while evaluating Lewis's monitoring style, concept X might have been ideal in the procedures department to some extent however the Advertising department would certainly call for reliance on Theory Y in order to get the creative thinking and also creativity from the groups.

Tuckman's Team effort Concept: Regarding Lewis's problem about bringing consistency between the marketing and advertising department is concerned, this would at first bring about clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the preliminary phase of team advancement, individuals may not bond, as they are active discovering their location in the group. By combining the marketing and advertising department's work, there may be the same preliminary detach which might lead to the second phase of 'storming' where the teams challenge one another. However, it is only during the third stage or 'norming' when they would come together to share suggestions before the team can cause harmony in the fourth phase 'carrying out'.

Bridges' Change Model: As per William Bridge's concept (appendix 4), individuals are quite uncomfortable with change, which is apparent by the scenario at Efficient Market Services August 1993 B2 Comdisco Ventures The circumstance can be seen as a normal training course of life if is studied according to Bridge's concept where he describes that people undergo 3 phases of shift when they experience adjustment. 'Ending, losing and Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter phase one and so there may be feelings like sadness, unpredictability, frustration, rage, anxiety, denial as well as disorientation.The circumstance at the marketing division of Efficient Market Services August 1993 B2 Comdisco Ventures is comparable so Lewis can obtain comfy with the concept that it is not remarkable habits. In the second stage, there might be a requirement to link the gap in between the brand-new as well as old society so Lewis may have to encounter this experience once Krasnow leaves. There might be low spirits as well as low performance at this stage which should not be taken as a trouble. It is throughout this phase that Lewis will certainly have to give assistance to the division so that they can discover a sense of direction. It can be seen how Krasnow has actually already made this transition easier by making Lewis obtain involved in the department a year before his actual separation. As per Bridges' Design, phase 3 will certainly cause openness to learning, High energy and commitment as individuals will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'safety requires as being a lower level need 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 and out of danger' is at the second level of requirements. Before a staff member can be made to create emotionally, he requires to have his 'Physical 'and 'Safety' needs fulfilled.

SWOT Analysis for Efficient Market Services August 1993 B2 Comdisco Ventures Case Study



Ramification of Analysis.

The OB analysis has actually checked out different concepts to recognize exactly how to deal with the existing circumstance handy. The adhering to 3 choices have been suggested to aid Lewis deal with the business difficulties in the marketing division. Each of these options has been proposed for alleviating the change required to bring the advertising department according to the demands of the market and for making the cultural modification that would certainly comply with once the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Production features. Combination of Advertising with Procedures.

Analysis of Alternatives.

Assimilation of Advertising & Advertising Functions: The in-house advertising agency of Efficient Market Services August 1993 B2 Comdisco Ventures is already toughness for the company in terms of conserving up on expenses connected to advertising and also promotion. Because no new recruitment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising feature, this is a desirable chance for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with company and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both marketing and advertising features.

The advantage of this strategy is that it will certainly integrate both features while minimizing the need for employing an additional resource for marketing. Lewis would certainly be heading the marketing division as well as in any case her replacement would certainly be required for the current duty that she is doing. The disadvantage of this option is that exterior hiring might produce resentment from inner employees that might be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Provided the competitive pressures as well as top quality job called for from the ad agency, it is suggested that Lewis should enable the production device to be a different feature from the marketing unit. Given that a lot of advertising agencies had these 2 features as separate devices, it makes even more sense to adhere to the norm. In addition to this, both functions may have the ability to focus on their core triggers more efficiently. Nevertheless, the drawback of this method would be that added expenses would need to be borne for setting up separate production functions. Along with this, a manufacturing head may need to be employed which can increase expenses for the company.

Combination of Advertising with Procedures: Considering that Lewis is already caring for the advertising and operations divisions concurrently; it makes sense to incorporate the two features considering that she has been efficiently dealing with both ends. The truth that both divisions already have major distinctions over appropriation of sources suggests that this combination might be able to bring about harmony particularly as Lewis would certainly be heading both ends.However there are numerous negative aspects of this step especially as it would certainly put excessive problem over Lewis's shoulders. The truth that Lewis needs to adapt her monitoring design for the advertising and marketing department suggests that these two divisions would certainly be culturally diverse. Lewis might not be able to use one kind of leadership design to both departments which can result in inefficiency in either one of the two functions.

Referral.



An evaluation of the 3 alternatives shows that combination of advertising as well as procedures would not be a possible relocation due to the huge distinctions between the 2 divisions regardless of the truth that presently Lewis is handling both. While splitting up of the manufacturing function may have been a desirable move for the marketing division, the fact that it would indicate positioning a 3rd function under Lewis's wing means this should be avoided.

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

Marketing and advertising features would certainly be merged.

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

Manufacturing function will certainly stay part of advertising under marketing feature.

Lewis will separate herself from operations.

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

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

Backup plan.

If the assimilation does not work out as planned, a contingency plan would comply with which would certainly divide the production function from the advertising feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will definitely be divided by positioning it under an SVP production.