Electronic Commerce Network A Case Study Help


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Electronic Commerce Network A Case Study Help

Background and Facts

Electronic Commerce Network A an office materials store for little and average sized businesses has lately been associated with preparing for a merger with its rival Home Deport, which has actually impacted efficiency levels in departmentswith the senior manager involved in lawful problems put forth by the federal Profession Compensation. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the near future. With difficulties in the type of a possible social change as well as reduced employee morale, the company requires a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential social modification at the marketing department of Electronic Commerce Network A is raising unpredictability in the workplace causing different challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical decisions since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Offered the reality that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might have the ability to affect efficiency or tactical goals. Federal Profession Payment's antitrust suit against the merging occupied important time of the company's elderly monitoring recommending that 'political' factors can have significant ramifications for a worldwide business.

Economic Factors: Financial factors such as the introduction of local business in the worldwide scenario suggest that Electronic Commerce Network A is growing in an atmosphere where there is prospective growth of companies. Fact that store clients are mainly looking for office supplies for house offices recommends that the market has a climbing fad of business owners and residence based businesses.

Social factors: Social trends in the economy show that customers are looking for ease in addition to appealing costs. Marketing research shows how the client for Electronic Commerce Network A does not have awareness regarding locating solutions which can supply a mix of benefit and also inexpensive.

Technological factors: Innovation plays a crucial duty in Electronic Commerce Network A's company method specifically as the company is piloting Technology centers which would certainly use modern technology sales as well as assistance in the form of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Actions problems can be seen in Electronic Commerce Network A's case as highlighted in this section.

Uneasiness about cultural modification: There is concern concerning a social modification that would certainly take place when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the personnel already revealing unhappiness over this potential relocation. This predicted modification has produced tension in the workplace which has been paired with the past anxiety of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is scarcity of employees that can match the demanding atmosphere of a hectic organization. Not just does this cause difficulty in finding the right individuals, it puts anxiety on new hires as can not hold up against the rate as well as stress that the organization expects them to birth.

Double Reporting Lines: Beginners discover this organizational culture difficult and difficult to manage particularly as dotted line partnerships are meant to be weaker as a whole as well as unbiased setup as well as performance evaluation is still done by the solid line supervisor. This suggests that newcomers can lose clarity about their respective duties and objectives specifically as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been qualified as well as ideal for the job yet the reality that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Work Insecurity: Worry and also insecurity can be determined as two significant worries that Lewis would be managing especially as the merger has now be cancelled and also 2 senior execs of the advertising and marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a social modification but would certainly additionally need to confirm herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's monitoring style as well as its conflict with the marketing department's role can additionally be seen as an OB difficulty particularly as she has been used to managing problems in the procedures division where personnel are instructed to focus on procedures and also get them. The advertising division on the various other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow that concentrated more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, advertising, merchandizing as well as operations specifically over the appropriation of the advertising and marketing mix can be identified as an additional OB issue. The advertising division does not share the very same vision as the various other two divisions relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures departments do not concur over the marketing mix allocation among one an additional either.

Disintegration in Advertising Department: Fragmentation in between the marketing and advertising divisions can be identified as an additional OB issue which can require more focus. The reality that the marketing and advertising sections in the marketing department are detached is stopping both divisions from gaining from each various other's experience as well as knowledge. Combination of marketing with retailing as well as operations would become more difficult if the marketing division itself is degenerated which can be one more possible OB worry.

Electronic Commerce Network A Analysis

Different theories have actually been utilized to explain the circumstances to obtain more clarity concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are passive and also careless, have little passion and also resist change. The hard variation of this theory stressed coercion, limited controls, hazards and also punishments. Gradually it produces low efficiency, refined sabotage and competition (Deal, 2003). Although the circumstance at Electronic Commerce Network A is not completely following Theory X, it can be seen that new hires are finding this environment rather difficult which might at some point cause a higher inclination of the management in the direction of Concept X. According to McGregor's advocated sight, which he called Theory Y, the essential job of the administration is to organize organizational problems to ensure that individuals can attain their own goals best by routing their efforts in the direction of business incentives. If people locate no fulfillment in their work, the monitoring would certainly have little option but to rely upon concept X and also external control (Deal, 2003). Also while evaluating Lewis's administration design, theory X may have been suitable in the procedures division somewhat but the Marketing division would require dependence on Theory Y in order to get the imagination and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's concern regarding bringing consistency in between the marketing and advertising department is concerned, this would originally lead to clash as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first stage of team growth, individuals may not bond, as they are busy locating their area in the team. By incorporating the advertising and marketing department's work, there might coincide preliminary separate which can bring about the second phase of 'storming' where the groups test each other. It is only throughout the 3rd stage or 'norming' when they would certainly come together to share ideas before the team can bring about synergy in the 4th stage 'executing'.

Bridges' Shift Design: According To William Bridge's theory (appendix 4), individuals are quite uneasy with change, which is evident by the situation at Electronic Commerce Network A The situation can be viewed as a normal course of life if is examined based on Bridge's concept where he describes that individuals experience three phases of shift when they experience adjustment. 'Ending, losing as well as Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they get in phase one therefore there might be emotions like despair, unpredictability, stress, temper, anxiety, denial and also disorientation.The situation at the advertising and marketing department of Electronic Commerce Network A is comparable so Lewis can get comfortable with the suggestion that it is not phenomenal behavior. In the 2nd stage, there may be a need to bridge the void in between the new and old society so Lewis might need to face this ordeal when Krasnow leaves. There may be reduced morale and also low performance at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will certainly need to offer guidance to the department to make sure that they can locate an orientation. It can be seen how Krasnow has actually currently made this change easier by making Lewis get associated with the division a year prior to his actual separation. As per Bridges' Version, phase three will certainly produce visibility to learning, High power and also dedication as individuals will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the relevance of 'safety and security requires as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and secure as well as out of threat' is at the 2nd level of demands. Prior to an employee can be made to develop mentally, he requires to have his 'Physiological 'and also 'Safety' needs satisfied.

SWOT Analysis for Electronic Commerce Network A Case Study

Implication of Analysis.

The OB analysis has looked at numerous theories to comprehend just how to manage the existing circumstance available. The complying with three options have been recommended to aid Lewis handle the organizational obstacles in the advertising department. Each of these choices has been recommended for easing the change needed to bring the advertising and marketing division in accordance with the requirements of the market and for making the social adjustment that would follow as soon as the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production functions. Combination of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing along with firm and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both marketing as well as advertising functions.

The advantage of this technique is that it will integrate the two functions while reducing the need for working with an added source for marketing. Lewis would certainly be heading the advertising division and in any type of case her substitute would be needed for the existing function that she is doing. The downside of this option is that external hiring may cause bitterness from interior workers that might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Manufacturing: Offered the affordable pressures and excellent quality job called for from the ad agency, it is suggested that Lewis should enable the manufacturing system to be a different function from the marketing unit. Given that most ad agency had these 2 features as different devices, it makes more sense to comply with the norm. Both features might be able to concentrate on their core triggers much more successfully. The negative aspect of this technique would be that extra costs would have to be birthed for establishing up separate production features. Along with this, a production head might need to be worked with which could raise expenses for the company.

Combination of Advertising with Workflows: Since Lewis is already taking care of the marketing and procedures divisions all at once; it makes feeling to integrate the 2 functions because she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these 2 departments would certainly be culturally varied.


An assessment of the three alternatives shows that combination of marketing and operations would not be a viable relocation due to the large distinctions between the two divisions despite the fact that currently Lewis is handling both. While separation of the manufacturing function might have been a desirable move for the advertising department, the reality that it would imply placing a 3rd function under Lewis's wing implies this should be avoided also. The combination of the marketing department is the best alternative in regards to getting the optimum results from the department. An action plan for this choice is reviewed below.

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

Advertising and Marketing features would be merged.

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

Manufacturing function will remain component of advertising and marketing under advertising function.

Lewis will certainly divide herself from operations.

A democratic leadership design with staff member empowerment will certainly be utilized in advertising and marketing division.

Open door plan and emphasis on cross department communication will certainly be targeted at removing disharmony.

Contingency plan.

If the integration does not exercise as intended, a contingency plan would follow which would certainly separate the manufacturing function from the marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. In that case the production function will most definitely be separated by placing it under an SVP manufacturing.