Empire Blue Cross And Blue Shield C Case Study Help


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Empire Blue Cross And Blue Shield C Case Study Analysis

Background and Facts

Empire Blue Cross And Blue Shield C a workplace products seller for tiny and also medium sized services has lately been associated with preparing for a merging with its rival House Deport, which has actually influenced efficiency levels in departmentswith the elderly supervisor involved in legal issues put forth by the government Profession Commission. With the Marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the near future. With difficulties in the type of a potential social adjustment as well as reduced worker spirits, the company requires a full reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing department of Empire Blue Cross And Blue Shield C is raising uncertainty in the workplace bring about numerous difficulties 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 duty in impacting calculated choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's treatment at the same time. Provided the truth that the store has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries may be able to affect performance or strategic objectives. Federal Trade Payment's antitrust suit against the merging used up useful time of the organization's senior monitoring recommending that 'political' factors can have major implications for a global service.

Economic Factors: Financial factors such as the development of small businesses in the global circumstance recommend that Empire Blue Cross And Blue Shield C is growing in an environment where there is potential growth of businesses. Along with this, truth that shop customers are mostly seeking office products for office suggests that the market has an increasing trend of business owners and home based services.

Social factors: Social trends in the economic climate reveal that consumers are seeking ease as well as appealing prices. Market research demonstrates how the customer for Empire Blue Cross And Blue Shield C does not have understanding about locating remedies which can supply a combination of comfort and also inexpensive.

Technological factors: Innovation plays a crucial duty in Empire Blue Cross And Blue Shield C's company method especially as the organization is piloting Technology centers which would provide modern technology sales and also support in the kind of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Habits problems can be seen in Empire Blue Cross And Blue Shield C's case as highlighted in this area.

Concerns concerning cultural change: There is uneasiness about a cultural change that would take place as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the employee already revealing discontent over this possible action. This anticipated change has actually produced stress and anxiety in the workplace which has been combined with the past stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is lack of personnel that can match the stressful environment of a busy company. Not only does this lead to difficulty in locating the best individuals, it puts stress and anxiety on brand-new hires as can not stand up to the speed and also pressure that the company expects them to bear.

Double Reporting Lines: Beginners find this business culture troublesome as well as difficult to deal with particularly as dotted line relationships are meant to be weaker generally and also objective setting and also efficiency examination is still done by the strong line supervisor. This indicates that beginners might lose quality regarding their respective duties and also goals particularly as populated line reporting does not maintain 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 although it had been guessed that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified and ideal for the task however the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Anxiety as well as instability can be recognized as two major problems that Lewis would be handling particularly as the merging has actually now be terminated and two elderly executives of the marketing department would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a cultural adjustment but would certainly additionally need to prove herself in her new function.

Inappropriate Administration Design of Leader: Lewis's administration style as well as its conflict with the advertising and marketing division's duty can likewise be seen as an OB obstacle particularly as she has actually been used to managing concerns in the operations department where employees are taught to concentrate on procedures and also obtain them. The advertising division on the various other hand can be seen as a group of individuals that are made use of to being supported by Krasnow who focused a lot more on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between three divisions, advertising, merchandizing and also procedures respectively over the allocation of the marketing mix can be recognized as another OB worry. The advertising department does not share the very same vision as the various other 2 departments regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also operations departments do not concur over the advertising and marketing mix appropriation amongst one an additional either.

Disintegration in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be determined as one more OB issue which can need additional focus. The reality that the marketing and advertising sections in the advertising department are disconnected is avoiding both divisions from acquiring from each various other's experience and also proficiency. Combination of advertising and marketing with retailing and also operations would end up being harder if the marketing department itself is degenerated which can be one more potential OB concern.

Empire Blue Cross And Blue Shield C Analysis

Various concepts have been made use of to clarify the conditions to obtain more clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that subordinates are passive and careless, have little aspiration and withstand modification. The scenario at Empire Blue Cross And Blue Shield C is not entirely following Concept X, it can be seen that new hires are locating this atmosphere instead difficult which may ultimately lead to a better inclination of the administration in the direction of Theory X. Even while analyzing Lewis's monitoring design, theory X might have been appropriate in the procedures department to some degree however the Marketing division would require dependence on Theory Y in order to obtain the creativity and creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's concern concerning bringing harmony between the advertising and marketing department is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the initial stage of team advancement, individuals might not bond, as they are active locating their place in the team. By integrating the marketing and advertising department's job, there may be the same preliminary detach which can cause the second phase of 'storming' where the teams test each other. Nevertheless, it is just during the third stage or 'norming' when they would collaborate to share ideas before the team can produce synergy in the fourth stage 'doing'.

When individuals are offered with modification, they get in stage one and also so there may be emotions like sadness, unpredictability, irritation, temper, concern, rejection as well as disorientation.The situation at the advertising and marketing department of Empire Blue Cross And Blue Shield C is comparable so Lewis can obtain comfortable with the suggestion that it is not remarkable actions. It is during this phase that Lewis will certainly have to provide support to the division so that they can locate a sense of instructions. It can be seen exactly how Krasnow has actually currently made this change simpler by making Lewis get entailed in the division a year before his real separation.
Vrio Analysis
Maslow's Need pecking order: The OB concern pertaining to insecurity at the work environment has been activated first of all by the modification in monitoring and also second of all by the reality that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the relevance of 'safety and security requires as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected and safe' goes to the second degree of requirements. Prior to an employee can be made to create emotionally, he needs to have his 'Physiological 'as well as 'Security' requires fulfilled. This indicates that unless the employees are made to really feel secure about their current employment standing in Empire Blue Cross And Blue Shield C they might not get to 'Self-Fulfillment'. (King, 2009).

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

Ramification of Analysis.

The OB analysis has checked out various theories to comprehend how to cope with the existing scenario handy. The complying with three choices have actually been recommended to aid Lewis handle the organizational challenges in the advertising and marketing department. Each of these alternatives has been proposed for reducing the transition required to bring the marketing division in line with the needs of the market as well as for making the cultural modification that would certainly adhere to as soon as the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Manufacturing features. Assimilation of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house advertising and marketing firm of Empire Blue Cross And Blue Shield C is currently stamina for the company in regards to conserving up on expenses connected to marketing and also promo. Given that no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising and marketing feature, this is a positive chance for integrating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business marketing in addition to agency and also retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising features.

The advantage of this strategy is that it will incorporate the two functions while minimizing the requirement for employing an added source for marketing. Lewis would be heading the advertising division and in any case her replacement would be needed for the current role that she is doing. The disadvantage of this option is that outside hiring may cause bitterness from internal workers who may be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Offered the affordable stress as well as top quality job called for from the advertising agency, it is suggested that Lewis must enable the production unit to be a separate function from the advertising and marketing unit. Considering that a lot of ad agency had these 2 functions as different systems, it makes more feeling to comply with the standard. In addition to this, both features may be able to focus on their core turns on extra successfully. The downside of this technique would be that additional prices would have to be birthed for setting up different manufacturing functions. A manufacturing head might have to be worked with which can raise overheads for the company.

Combination of Advertising with Operations: Considering that Lewis is currently taking care of the marketing as well as operations divisions concurrently; it makes sense to incorporate the two features considering that she has actually been efficiently taking care of both ends. The fact that Lewis has to adapt her monitoring design for the marketing division recommends that these two departments would certainly be culturally varied.


An evaluation of the 3 alternatives indicates that integration of marketing and operations would certainly not be a possible step as a result of the large differences between both departments despite the fact that currently Lewis is handling both. While splitting up of the manufacturing feature might have been a positive step for the advertising and marketing department, the reality that it would suggest positioning a 3rd feature under Lewis's wing indicates this ought to be prevented. The combination of the advertising and marketing department is the best alternative in terms of obtaining the optimal results from the department. An activity prepare for this alternative is gone over below.

Activity Strategy.
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

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

Lewis will certainly divide herself from procedures.

An autonomous leadership style with staff member empowerment will be made use of in marketing division.

Open door plan and focus on cross department interaction will be aimed at getting rid of discord.

Contingency plan.

If the integration does not work out as intended, a backup plan would adhere to which would certainly separate the manufacturing feature from the advertising and marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will certainly be separated by placing it under an SVP manufacturing.