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Elemental Technologies The Seed Investment Dilemma Case Study Analysis

CASE ANALYSIS

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Background and Facts

Elemental Technologies The Seed Investment Dilemma an office supplies store for tiny and average sized services has recently been involved in preparing for a merging with its rival Home Deport, which has actually impacted effectiveness levels in departmentswith the senior supervisor associated with legal issues put forth by the federal Profession Compensation. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the future. With obstacles in the form of a possible social modification and also low staff member spirits, the organization requires a full reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising division of Elemental Technologies The Seed Investment Dilemma is enhancing unpredictability in the working environment resulting in various 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 significant role in influencing calculated choices given that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Provided the fact that the shop has a worldwide existence with branches in UK, USA, Canada and Germany, political consider each of these countries may have the ability to influence efficiency or strategic objectives. Federal Trade Commission's antitrust fit against the merging used up important time of the company's senior monitoring recommending that 'political' factors can have severe implications for a global organisation.

Economic Factors: Economic factors such as the emergence of local business in the worldwide scenario suggest that Elemental Technologies The Seed Investment Dilemma is growing in a setting where there is possible growth of businesses. In addition to this, reality that shop clients are mainly searching for workplace materials for home offices suggests that the market has an increasing pattern of entrepreneurs and home businesses.

Social factors: Social fads in the economic climate reveal that customers are searching for convenience as well as eye-catching costs. Marketing research shows how the client for Elemental Technologies The Seed Investment Dilemma lacks awareness about locating options which can offer a combination of benefit as well as inexpensive.

Technical factors: Modern technology plays an essential duty in Elemental Technologies The Seed Investment Dilemma's organisation approach especially as the organization is piloting Technology centers which would certainly offer technology sales and also support in the form of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Behavior concerns can be seen in Elemental Technologies The Seed Investment Dilemma's case as highlighted in this section.

Concerns concerning social change: There is uneasiness regarding a cultural adjustment that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice President of Marketing with a lot of the personnel already revealing discontent over this possible step. This expected change has actually developed stress in the workplace which has been coupled with the past stress and anxiety of preparing the company for a potential merger with Home Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a fast-paced company. Not only does this bring about difficulty in discovering the right individuals, it puts tension on brand-new hires as can not endure the pace as well as pressure that the company anticipates them to bear.

Dual Reporting Lines: Beginners locate this business culture troublesome as well as difficult to cope with specifically as populated line connections are indicated to be weaker in general and objective setup as well as efficiency evaluation is still done by the solid line supervisor. This means that newbies could shed clearness concerning their corresponding roles as well as purposes particularly as dotted line coverage does not keep them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been speculated that the latter would take Krasnow's setting came as a strike to her morale. Lewis might have been qualified as well as appropriate for the job yet the fact that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Job Insecurity: Concern as well as instability can be determined as 2 significant problems that Lewis would be dealing with particularly as the merger has now be terminated and two senior executives of the marketing division would be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would certainly not just supervise of brining about a cultural modification however would also have to verify herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's management design and its conflict with the marketing division's duty can additionally be viewed as an OB obstacle particularly as she has actually been utilized to handling issues in the procedures department where employees are taught to concentrate on processes and also obtain them right. The advertising department on the various other hand can be seen as a team of individuals who are used to being supported by Krasnow who concentrated a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, advertising and marketing, merchandizing and operations specifically over the allocation of the marketing mix can be determined as one more OB problem. The marketing department does not share the same vision as the other two divisions regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix appropriation amongst one an additional either.

Disintegration in Advertising Department: Disintegration between the marketing and advertising divisions can be recognized as one more OB problem which can need further focus. The fact that the advertising and marketing areas in the advertising and marketing division are separated is preventing both departments from getting from each other's experience and also expertise. Assimilation of advertising and marketing with merchandising and also operations would become harder if the marketing department itself is broken down which can be another potential OB issue.

Elemental Technologies The Seed Investment Dilemma Analysis

Various theories have actually been made use of to clarify the conditions to obtain additional clarity regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that staffs are passive and also careless, have little passion and resist change. The circumstance at Elemental Technologies The Seed Investment Dilemma is not entirely adhering to Theory X, it can be seen that new hires are finding this atmosphere instead stressful which might eventually lead to a better disposition of the management towards Theory X. Also while analyzing Lewis's management design, concept X might have been ideal in the operations department to some extent but the Marketing division would need dependence on Theory Y in order to get the creativity as well as creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's problem about bringing consistency between the marketing as well as advertising and marketing division is worried, this would at first lead to clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising and also advertising department's job, there might be the same initial disconnect which could lead to the second phase of 'storming' where the teams challenge one an additional.

When individuals are presented with adjustment, they enter stage one and so there might be feelings like unhappiness, uncertainty, frustration, temper, worry, rejection and disorientation.The situation at the advertising department of Elemental Technologies The Seed Investment Dilemma is comparable so Lewis can get comfortable with the concept that it is not extraordinary habits. It is during this phase that Lewis will have to offer support to the department so that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this transition less complicated by making Lewis obtain involved in the department a year before his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB problem pertaining to instability at the workplace has been set off first of all by the change in administration and second of all by the reality that the merging will no more be started. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the importance of 'protection needs as being a lower degree requirement of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel safe and also out of danger' is at the second level of demands. Before an employee can be made to establish emotionally, he needs to have his 'Physiological 'as well as 'Safety and security' requires satisfied. This suggests that unless the workers are made to really feel secure concerning their existing work condition in Elemental Technologies The Seed Investment Dilemma they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Elemental Technologies The Seed Investment Dilemma Case Study



Implication of Analysis.

The OB analysis has actually looked at numerous concepts to understand exactly how to manage the present circumstance available. The adhering to 3 options have actually been proposed to help Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has been suggested for alleviating the change needed to bring the advertising department in line with the demands of the market and for making the cultural adjustment that would comply with once the existing leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Manufacturing functions. Integration of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising and marketing along with company as well as retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing as well as advertising and marketing features.

The benefit of this strategy is that it will certainly integrate both functions while minimizing the demand for employing an additional source for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as regardless her replacement would certainly be needed for the existing function that she is performing. The negative aspect of this option is that outside hiring might cause animosity from internal workers that may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Provided the competitive pressures as well as premium quality job needed from the advertising agency, it is advised that Lewis must allow the manufacturing system to be a different feature from the marketing device. Because the majority of advertising agencies had these two features as separate devices, it makes more feeling to follow the norm. Both functions might be able to focus on their core activates a lot more effectively. The disadvantage of this technique would be that additional costs would certainly have to be borne for setting up separate production functions. Along with this, a production head may have to be worked with which could raise overheads for the organization.

Combination of Advertising And Marketing with Workflows: Because Lewis is already looking after the advertising and operations divisions simultaneously; it makes good sense to incorporate the two functions considering that she has actually been effectively taking care of both ends. The truth that the two departments already have significant distinctions over allowance of sources suggests that this assimilation may have the ability to bring about consistency especially as Lewis would be heading both ends.However there are different downsides of this action especially as it would certainly put excessive problem over Lewis's shoulders. The truth that Lewis has to adjust her management style for the marketing department recommends that these 2 departments would be culturally varied. Lewis might not be able to apply one kind of leadership style to both divisions which can result in inadequacy in either one of the 2 features.

Referral.



An examination of the three alternatives indicates that integration of marketing as well as procedures would not be a possible action due to the large differences between the 2 divisions regardless of the reality that currently Lewis is dealing with both. While splitting up of the manufacturing feature may have been a favorable relocation for the marketing department, the truth that it would suggest positioning a 3rd feature under Lewis's wing suggests this need to be prevented.

Activity Strategy.
Recommendation
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will separate herself from procedures.

An autonomous management style 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 strategy.

If the combination does not work out as intended, a contingency strategy would adhere to which would separate the production function from the marketing function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing division without an SVP. In that case the manufacturing feature will absolutely be divided by positioning it under an SVP manufacturing.