Empire Blue Cross And Blue Shield D Case Study Solution


Home >> Harvard >> Empire Blue Cross And Blue Shield D >>

Empire Blue Cross And Blue Shield D Case Study Analysis

Background and Facts

Empire Blue Cross And Blue Shield D an office materials merchant for tiny and moderate sized businesses has recently been associated with preparing for a merging with its rival Residence Deport, which has actually affected efficiency levels in departmentswith the elderly supervisor associated with legal problems put forth by the government Profession Commission. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the future. With challenges in the kind of a potential social modification as well as reduced worker morale, the company requires a complete reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising division of Empire Blue Cross And Blue Shield D is raising unpredictability in the working environment causing various difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing tactical decisions considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Compensation's intervention in the process. Offered the reality that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries might have the ability to impact performance or strategic goals. Federal Profession Payment's antitrust match versus the merger took up beneficial time of the organization's senior administration recommending that 'political' factors can have severe implications for a global company.

Economic Factors: Economic factors such as the appearance of local business in the global scenario suggest that Empire Blue Cross And Blue Shield D is thriving in an atmosphere where there is possible growth of organisations. Along with this, truth that shop customers are mainly trying to find workplace materials for office recommends that the marketplace has an increasing trend of business owners as well as online services.

Social factors: Social fads in the economic climate reveal that clients are trying to find benefit as well as eye-catching prices. Marketing research demonstrates how the consumer for Empire Blue Cross And Blue Shield D does not have understanding concerning finding solutions which can use a mix of benefit as well as affordable.

Technological factors: Modern technology plays a vital duty in Empire Blue Cross And Blue Shield D's organisation strategy especially as the company is piloting Innovation facilities which would use technology sales and also support in the kind of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues and also Effects.

Several underlying Business Actions concerns can be seen in Empire Blue Cross And Blue Shield D's case as highlighted in this area.

Uneasiness regarding social modification: There is worry regarding a cultural adjustment that would happen once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with the majority of the employee currently revealing discontent over this potential move. This anticipated adjustment has actually created stress in the workplace which has been paired with the past stress of preparing the firm for a possible merger with House Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is shortage of personnel that can match the difficult environment of a fast-paced company. Not just does this cause trouble in finding the appropriate people, it puts stress on brand-new hires as can not hold up against the speed and pressure that the organization expects them to bear.

Double Coverage Lines: Newcomers find this organizational society troublesome as well as challenging to deal with particularly as populated line partnerships are suggested to be weaker as a whole and unbiased setup and also efficiency examination is still done by the solid line manager. This means that newcomers can lose quality regarding their respective duties and goals specifically as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been hypothesized that the latter would take Krasnow's placement came as an impact to her morale. Lewis might have been capable and also ideal for the task however the reality that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Work Insecurity: Anxiety as well as instability can be identified as 2 major issues that Lewis would certainly be dealing with particularly as the merger has currently be terminated and also 2 elderly execs of the advertising and marketing department would be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining about a cultural adjustment but would certainly likewise need to show herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's management design and its incompatibility with the advertising division's function can additionally be seen as an OB difficulty specifically as she has been made use of to dealing with problems in the operations division where employees are shown to focus on processes as well as obtain them. The advertising division on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow that concentrated a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between 3 departments, advertising, merchandizing as well as operations specifically over the allocation of the marketing mix can be identified as an additional OB worry. Although the marketing department does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix appropriation among each other either.

Fragmentation in Advertising And Marketing Department: Disintegration between the advertising and marketing departments can be determined as one more OB concern which might need more attention. The fact that the marketing and advertising areas in the advertising department are detached is stopping both departments from obtaining from each other's experience and also experience. Integration of advertising with merchandising and operations would come to be harder if the advertising division itself is disintegrated which can be another possible OB issue.

Empire Blue Cross And Blue Shield D Analysis

Different theories have actually been used to describe the scenarios to get further clearness concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are easy and careless, have little passion as well as resist change. The circumstance at Empire Blue Cross And Blue Shield D is not entirely adhering to Concept X, it can be seen that new hires are locating this setting rather demanding which may ultimately lead to a better disposition of the management towards Theory X. Even while assessing Lewis's management style, concept X may have been ideal in the operations department to some extent however the Advertising department would call for reliance on Concept Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Synergy Concept: As for Lewis's problem concerning bringing harmony in between the marketing and advertising division is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the first phase of group advancement, individuals may not bond, as they are busy discovering their area in the team. By combining the advertising and marketing department's job, there might coincide initial disconnect which might result in the second phase of 'storming' where the teams test each other. It is only throughout the third phase or 'norming' when they would certainly come together to share concepts prior to the group can bring around harmony in the 4th stage 'performing'.

When people are provided with adjustment, they enter stage one as well as so there might be feelings like despair, unpredictability, disappointment, anger, concern, denial and also disorientation.The situation at the advertising division of Empire Blue Cross And Blue Shield D is similar so Lewis can get comfortable with the suggestion that it is not remarkable actions. It is during this phase that Lewis will have to give guidance to the division so that they can find a sense of direction. It can be seen how Krasnow has currently made this change less complicated by making Lewis get involved in the department a year before his real departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to insecurity at the workplace has been set off firstly by the adjustment in monitoring and secondly by the truth that the merger will no more be started. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety and security requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to feel safe and secure as well as untouched' is at the 2nd degree of requirements. Before a staff member can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Safety and security' needs satisfied. This shows that unless the personnel are made to feel safe concerning their present work condition in Empire Blue Cross And Blue Shield D they might not get to 'Self-Fulfillment'. (King, 2009).

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

Implication of Analysis.

The OB analysis has looked at various theories to understand just how to deal with the existing situation at hand. The adhering to three alternatives have been recommended to assist Lewis deal with the organizational obstacles in the advertising division. Each of these alternatives has actually been suggested for alleviating the transition needed to bring the advertising and marketing department in accordance with the demands of the marketplace as well as for making the cultural change that would certainly adhere to once the current leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Production functions. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business marketing along with firm and also retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both marketing and also advertising and marketing functions.

The advantage of this strategy is that it will certainly integrate both features while decreasing the requirement for working with an added source for marketing. Along with this, Lewis would certainly be heading the advertising and marketing department and also in any case her replacement would be required for the existing function that she is performing. The downside of this option is that exterior hiring might bring about animosity from inner workers who may be considering the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Provided the competitive stress as well as high top quality job needed from the advertising and marketing firm, it is recommended that Lewis should permit the manufacturing system to be a separate feature from the marketing unit. Since the majority of advertising companies had these two functions as separate devices, it makes even more sense to follow the standard.

Combination of Advertising with Procedures: Because Lewis is already taking treatment of the marketing as well as procedures departments all at once; it makes feeling to incorporate the 2 functions given that she has actually been successfully taking care of both ends. The truth that Lewis has to adapt her monitoring style for the marketing department suggests that these two divisions would be culturally diverse.


An evaluation of the 3 options indicates that combination of marketing and procedures would not be a feasible move due to the huge distinctions between the 2 divisions in spite of the truth that presently Lewis is managing both. While splitting up of the manufacturing function may have been a favorable step for the marketing department, the reality that it would certainly imply placing a 3rd feature under Lewis's wing implies this must be prevented.

Action Plan.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

Judith Shapiro will be worked with to take Lewis's location as SVP of marketing and advertising.

Manufacturing feature will continue to be component of advertising and marketing under marketing function.

Lewis will divide herself from operations.

An autonomous management style with worker empowerment will be utilized in marketing department.

Open up door policy and emphasis on cross department interaction will be targeted at getting rid of disharmony.

Contingency strategy.

If the assimilation does not work out as intended, a backup strategy would adhere to which would certainly separate the production feature from the advertising function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the production feature will absolutely be divided by putting it under an SVP manufacturing.