Empire Blue Cross And Blue Shield B Case Study Analysis


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Empire Blue Cross And Blue Shield B Case Study Solution

Background and Facts

Empire Blue Cross And Blue Shield B an office products store for tiny as well as average sized businesses has actually recently been involved in planning for a merging with its competitor Home Deport, which has actually influenced effectiveness degrees in departmentswith the senior supervisor involved in legal problems put forth by the government Profession Compensation. With the Marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With obstacles in the kind of a potential social adjustment as well as low staff member spirits, the organization is in need of a total reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising department of Empire Blue Cross And Blue Shield B is enhancing uncertainty in the working environment causing different difficulties for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing calculated choices because Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Compensation's treatment at the same time. Given the reality that the shop has an international visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might have the ability to impact performance or critical goals. Federal Trade Payment's antitrust fit against the merger took up valuable time of the organization's elderly administration suggesting that 'political' factors can have significant ramifications for a global business.

Economic Factors: Economic factors such as the emergence of local business in the global scenario recommend that Empire Blue Cross And Blue Shield B is growing in an environment where there is possible development of organisations. Fact that store clients are mostly looking for office materials for house workplaces suggests that the market has an increasing pattern of business owners as well as residence based services.

Social factors: Social fads in the economy show that customers are seeking convenience as well as eye-catching rates. Marketing research shows how the client for Empire Blue Cross And Blue Shield B lacks awareness regarding discovering options which can use a mix of benefit and low costs.

Technological factors: Modern technology plays a crucial duty in Empire Blue Cross And Blue Shield B's company technique specifically as the company is piloting Technology centers which would certainly provide technology sales and also support in the form of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Behavior problems can be seen in Empire Blue Cross And Blue Shield B's case as highlighted in this section.

Worries concerning cultural change: There is apprehension about a social change that would certainly happen once Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the team member already showing discontent over this prospective relocation. This predicted modification has actually produced anxiety in the work environment which has been paired with the past anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is shortage of employees that can match the difficult atmosphere of a fast-paced company. Not just does this bring about problem in finding the ideal individuals, it places stress and anxiety on brand-new hires as can not hold up against the pace as well as pressure that the organization anticipates them to bear.

Double Reporting Lines: Beginners find this business culture cumbersome and also difficult to cope with specifically as dotted line connections are suggested to be weak in general and unbiased setup and also performance evaluation is still done by the solid line manager. This suggests that newcomers can lose quality regarding their particular duties and purposes especially as populated line coverage does not keep them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been speculated that the latter would take Krasnow's position came as a blow to her morale. Lewis might have been capable and also appropriate for the work however the fact that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Insecurity: Worry as well as insecurity can be determined as two significant issues that Lewis would certainly be handling especially as the merging has currently be cancelled and also two elderly executives of the advertising department would certainly be leaving. The whole obligation of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural change however would likewise need to confirm herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's management design and its incompatibility with the advertising division's role can also be seen as an OB difficulty particularly as she has actually been made use of to managing issues in the operations division where workers are shown to focus on processes and obtain them. The advertising department on the various other hand can be seen as a team of people who are utilized to being supported by Krasnow that concentrated extra on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be determined as another OB concern. The marketing department does not share the very same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance among one an additional either.

Fragmentation in Advertising Division: Disintegration in between the marketing and advertising divisions can be identified as one more OB concern which can require additional interest. The reality that the marketing and advertising areas in the advertising and marketing division are separated is avoiding both divisions from obtaining from each various other's experience as well as experience. Combination of advertising and marketing with retailing as well as operations would come to be harder if the advertising and marketing department itself is disintegrated which can be another possible OB worry.

Empire Blue Cross And Blue Shield B Analysis

Various theories have actually been made use of to explain the situations to get more clarity concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are passive and also lazy, have little passion as well as resist change. The scenario at Empire Blue Cross And Blue Shield B is not totally adhering to Concept X, it can be seen that brand-new hires are locating this atmosphere instead demanding which might ultimately lead to a better disposition of the management in the direction of Concept X. Also while assessing Lewis's management design, concept X might have been appropriate in the operations division to some degree but the Marketing department would need dependence on Theory Y in order to obtain the creative thinking as well as creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's problem about bringing harmony in between the advertising and marketing department is concerned, this would originally cause clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the initial phase of team advancement, people might not bond, as they are active discovering their location in the team. By integrating the advertising and marketing department's work, there might be the same initial detach which can bring about the second phase of 'storming' where the groups test one another. It is just during the third phase or 'norming' when they would come with each other to share suggestions before the group can bring around synergy in the 4th phase 'executing'.

When people are provided with change, they go into phase one and also so there may be emotions like despair, uncertainty, disappointment, temper, anxiety, denial and disorientation.The circumstance at the marketing department of Empire Blue Cross And Blue Shield B is comparable so Lewis can get comfortable with the concept that it is not extraordinary behavior. It is throughout this stage that Lewis will have to offer support to the division so that they can find a sense of instructions. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis obtain entailed in the department a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the importance of 'safety and security requires as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel secure and also out of danger' is at the 2nd level of requirements. Prior to an employee can be made to develop mentally, he needs to have his 'Physical 'and also 'Safety' needs fulfilled.

SWOT Analysis for Empire Blue Cross And Blue Shield B Case Study

Effects of Analysis.

The OB analysis has looked at different concepts to understand how to manage the current scenario handy. The adhering to three alternatives have been suggested to help Lewis take care of the organizational difficulties in the advertising and marketing department. Each of these alternatives has actually been recommended for relieving the transition needed to bring the marketing department in accordance with the requirements of the marketplace as well as for making the social modification that would certainly adhere to once the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Manufacturing functions. Combination of Advertising with Operations.

Analysis of Alternatives.

Integration of Advertising & Marketing Functions: The internal advertising and marketing company of Empire Blue Cross And Blue Shield B is already stamina for the company in regards to conserving up on overheads associated with marketing and promotion. Given that no new recruitment has been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising function, this is a beneficial possibility for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business advertising together with firm and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both marketing and advertising features.

The benefit of this method is that it will certainly integrate the two functions while lowering the demand for hiring an extra source for marketing. In addition to this, Lewis would be heading the marketing department and also regardless her replacement would be needed for the existing duty that she is performing. The negative aspect of this choice is that outside hiring might bring about animosity from inner workers that might be eying the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Provided the affordable stress as well as top quality work called for from the ad agency, it is advised that Lewis ought to allow the production unit to be a different feature from the marketing device. Since a lot of advertising agencies had these 2 functions as different units, it makes even more feeling to adhere to the standard. Along with this, both functions might have the ability to concentrate on their core activates a lot more efficiently. Nevertheless, the disadvantage of this method would be that added expenses would certainly have to be birthed for setting up different production functions. Along with this, a production head might have to be hired which might boost expenses for the organization.

Integration of Advertising And Marketing with Operations: Because Lewis is already looking after the advertising and marketing as well as procedures departments all at once; it makes good sense to incorporate the two functions given that she has been effectively caring for both ends. The fact that both departments already have major distinctions over allowance of resources recommends that this assimilation may have the ability to produce harmony particularly as Lewis would certainly be heading both ends.However there are different disadvantages of this action especially as it would place too much burden over Lewis's shoulders. The truth that Lewis has to adjust her administration design for the marketing department recommends that these two divisions would be culturally diverse. Lewis may not be able to use one kind of management design to both departments which can result in inefficiency in either one of the two features.


An assessment of the three choices shows that assimilation of advertising and operations would certainly not be a practical relocation due to the large differences in between the two departments in spite of the fact that currently Lewis is handling both. While separation of the production feature may have been a beneficial step for the marketing division, the reality that it would certainly imply placing a 3rd feature under Lewis's wing suggests this must be avoided.

Action Strategy.
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will separate herself from procedures.

An autonomous management design with staff member empowerment will be made use of in advertising and marketing division.

Open up door plan and emphasis on cross departmental interaction will be aimed at removing disharmony.

Contingency plan.

If the integration does not work out as intended, a contingency strategy would follow which would certainly divide the production feature from the marketing function to lower the tons 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. In that case the production feature will most definitely be divided by putting it under an SVP manufacturing.