Background and FactsElliot Lebowitz an office products merchant for tiny and also medium sized businesses has actually just recently been involved in planning for a merger with its competitor Home Deport, which has actually impacted effectiveness levels in departmentswith the senior manager associated with legal problems put forth by the federal Trade Payment. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the future. With obstacles in the form of a possible cultural modification and also reduced staff member spirits, the company needs a total reengineering effort at the advertising and marketing department.
The prospective cultural modification at the marketing division of Elliot Lebowitz is boosting uncertainty in the workplace causing various difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis
Political Factors: Political factors play a major role in impacting strategic decisions since Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Compensation's intervention in the process. Offered the reality that the shop has a global visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may be able to influence efficiency or tactical goals. Federal Profession Compensation's antitrust fit versus the merger occupied valuable time of the organization's senior administration suggesting that 'political' factors can have serious implications for a worldwide business.
Economic Factors: Financial factors such as the emergence of local business in the worldwide circumstance recommend that Elliot Lebowitz is growing in a setting where there is prospective development of organisations. In addition to this, truth that store clients are mainly looking for workplace supplies for home offices recommends that the market has a rising fad of entrepreneurs as well as online companies.
Social factors: Social patterns in the economy show that consumers are looking for convenience in addition to eye-catching prices. Market research demonstrates how the consumer for Elliot Lebowitz lacks awareness concerning discovering options which can use a mix of ease and low costs.
Technological factors: Technology plays a crucial duty in Elliot Lebowitz's organisation approach specifically as the organization is piloting Modern technology facilities which would supply modern technology sales as well as assistance in the type of memory upgrades, outer installations. (Summary of INSECT in appendix 2).
OB Issues as well as Symptoms.
Several underlying Business Actions concerns can be seen in Elliot Lebowitz's case as highlighted in this area.
Worries about social change: There is uneasiness regarding a social adjustment that would certainly occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the team member already revealing unhappiness over this prospective move. This anticipated adjustment has actually created anxiety in the work environment which has been combined with the previous stress and anxiety of preparing the company for a potential merging with Home Deport.
Demanding Job Atmosphere for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a busy organization. Not only does this bring about trouble in discovering the right people, it puts stress on new hires as can not stand up to the speed as well as pressure that the organization anticipates them to bear.
Dual Reporting Lines: Newbies find this business culture difficult and also difficult to manage particularly as dotted line relationships are suggested to be weaker as a whole and also objective setting as well as performance examination is still done by the solid line manager. This means that beginners can lose quality about their respective duties and purposes especially as dotted line reporting does not maintain them in straight communication with the strong line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been speculated that the last would take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and ideal for the work but the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.
Anxiety & Task Insecurity: Concern as well as instability can be identified as two significant problems that Lewis would be taking care of particularly as the merging has now be cancelled and two elderly executives of the marketing division would certainly be leaving. The whole obligation of the division would be dropping on Lewis's shoulders that would not simply supervise of brining regarding a social modification yet would certainly likewise need to show herself in her brand-new duty.
Incompatible Management Style of Leader: Lewis's administration design as well as its incompatibility with the marketing division's function can also be seen as an OB difficulty specifically as she has actually been made use of to taking care of issues in the operations division where personnel are shown to focus on processes as well as get them. The advertising and marketing department on the various other hand can be viewed as a group of people that are used to being nurtured by Krasnow who focused extra on output than procedures.
Interdepartmental Differences: Interdepartmental arguments between 3 divisions, marketing, merchandizing and operations specifically over the allotment of the advertising mix can be recognized as another OB problem. The advertising and marketing division does not share the very same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allocation amongst one an additional either.
Disintegration in Marketing Department: Disintegration between the advertising and marketing divisions can be determined as an additional OB concern which might require additional attention. The truth that the marketing and advertising sections in the advertising department are disconnected is preventing both departments from obtaining from each other's experience and proficiency. Integration of marketing with retailing and procedures would certainly come to be more difficult if the marketing department itself is degenerated which can be an additional prospective OB issue.
Elliot Lebowitz Analysis
Numerous theories have been made use of to explain the circumstances to get additional clearness regarding the situation available.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that subordinates are easy as well as careless, have little ambition and also stand up to change. The circumstance at Elliot Lebowitz is not totally adhering to Concept X, it can be seen that brand-new hires are discovering this setting rather difficult which might eventually lead to a higher inclination of the management towards Concept X. Also while assessing Lewis's monitoring style, theory X may have been suitable in the procedures department to some level yet the Advertising and marketing department would certainly require dependence on Theory Y in order to obtain the imagination and also creativity from the teams.
Tuckman's Team effort Concept: As far as Lewis's problem concerning bringing consistency between the advertising and marketing division is worried, this would initially bring about contrast as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, during the initial stage of group advancement, individuals may not bond, as they are hectic locating their location in the group. By incorporating the advertising and marketing division's job, there might be the same preliminary separate which might lead to the 2nd stage of 'storming' where the groups challenge each other. Nevertheless, it is just during the third stage or 'norming' when they would come together to share suggestions before the group can bring about harmony in the fourth stage 'executing'.
Bridges' Transition Version: Based On William Bridge's theory (appendix 4), people are quite awkward with change, which is obvious by the scenario at Elliot Lebowitz The scenario can be viewed as a regular program of life if is examined according to Bridge's theory where he explains that people undergo three phases of transition when they experience change. 'End, losing as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they enter phase one therefore there might be emotions like unhappiness, uncertainty, disappointment, rage, concern, rejection and disorientation.The scenario at the advertising and marketing division of Elliot Lebowitz is similar so Lewis can obtain comfortable with the concept that it is not amazing actions. In the 2nd phase, there may be a demand to bridge the void between the new as well as old culture so Lewis may have to face this experience when Krasnow leaves. There may be low morale and also low productivity at this stage which need to not be taken as a setback. It is throughout this stage that Lewis will certainly need to provide support to the department to ensure that they can find an orientation. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis get involved in the department a year before his actual departure. As per Bridges' Version, stage three will cause openness to knowing, High energy and also dedication as individuals will accept the modification (Bridges, 2004).
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the importance of 'protection needs as being a lower degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel safe as well as out of danger' is at the 2nd degree of requirements. Before a staff member can be made to develop emotionally, he requires to have his 'Physical 'as well as 'Safety' needs satisfied.
SWOT Analysis for Elliot Lebowitz Case Study
Effects of Analysis.
The OB analysis has actually looked at numerous concepts to understand just how to handle the present scenario available. The complying with three choices have actually been suggested to assist Lewis take care of the organizational challenges in the marketing division. Each of these options has actually been recommended for alleviating the transition needed to bring the advertising department according to the requirements of the marketplace and also for making the social modification that would certainly adhere to once the current leader leaves.
Combination of advertising and marketing features. Dividing Adverting as well as Production functions. Combination of Advertising with Procedures.
Examination of Alternatives.
Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing along with company and retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising as well as advertising functions.
The advantage of this technique is that it will integrate both features while lowering the need for working with an additional resource for marketing. Along with this, Lewis would certainly be heading the advertising department and also in any case her replacement would certainly be required for the present duty that she is doing. The downside of this option is that outside hiring may produce resentment from inner employees that may be looking at the placement of EVP after Lewis takes control of Krasnow's position.
Separating Adverting and also Production: Provided the affordable pressures and also high quality job needed from the marketing firm, it is advised that Lewis needs to permit the production system to be a different function from the marketing system. Given that the majority of marketing companies had these two features as separate systems, it makes more feeling to follow the norm.
Assimilation of Advertising with Operations: Because Lewis is currently taking treatment of the advertising and marketing and procedures departments concurrently; it makes feeling to integrate the two functions because she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the advertising department recommends that these two divisions would be culturally diverse.
An examination of the 3 options suggests that integration of advertising and marketing as well as operations would certainly not be a practical step as a result of the substantial distinctions in between both divisions although that currently Lewis is managing both. While splitting up of the manufacturing function might have been a favorable relocation for the advertising department, the reality that it would mean putting a 3rd feature under Lewis's wing implies this should be stayed clear of. The integration of the marketing department is the best choice in terms of obtaining the optimal results from the department. An activity plan for this option is discussed below.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.
Marketing and advertising features would be combined.
Judith Shapiro will be employed to take Lewis's area as SVP of advertising and marketing.
Manufacturing function will stay part of advertising and marketing under marketing function.
Lewis will divide herself from operations.
A democratic leadership style with staff member empowerment will be utilized in marketing department.
Open door plan and emphasis on cross department interaction will be aimed at eliminating disharmony.
If the integration does not exercise as prepared, a contingency strategy would certainly comply with which would certainly divide the production feature from the advertising feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising division without an SVP. Because case the production feature will most definitely be separated by putting it under an SVP production.