Empire Blue Cross And Blue Shield E Case Study Help


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Empire Blue Cross And Blue Shield E Case Study Help

Background and Facts

Empire Blue Cross And Blue Shield E an office supplies retailer for little and medium sized services has just recently been associated with planning for a merging with its competitor Home Deport, which has actually affected performance levels in departmentswith the elderly supervisor involved in lawful difficulties put forth by the government Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the near future. With obstacles in the type of a possible cultural adjustment and low staff member morale, the organization is in need of a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising division of Empire Blue Cross And Blue Shield E is raising unpredictability in the workplace causing numerous challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing calculated choices because Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Commission's treatment while doing so. Given the fact that the store has a global existence with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may be able to influence efficiency or calculated goals. Federal Profession Commission's antitrust suit against the merging occupied beneficial time of the company's senior monitoring suggesting that 'political' factors can have serious effects for a global service.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide situation suggest that Empire Blue Cross And Blue Shield E is flourishing in an environment where there is prospective growth of companies. Truth that store clients are mainly looking for office supplies for house offices suggests that the market has a rising trend of entrepreneurs as well as residence based services.

Social factors: Social fads in the economic climate reveal that consumers are looking for ease in addition to appealing rates. Market research demonstrates how the client for Empire Blue Cross And Blue Shield E lacks understanding concerning locating services which can use a combination of benefit and also low costs.

Technical factors: Modern technology plays an essential duty in Empire Blue Cross And Blue Shield E's business approach specifically as the organization is piloting Technology centers which would supply technology sales and assistance in the form of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Actions issues can be seen in Empire Blue Cross And Blue Shield E's case as highlighted in this area.

Worries regarding cultural adjustment: There is apprehension regarding a social modification that would certainly take place as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the employee already revealing unhappiness over this prospective action. This predicted modification has created stress in the workplace which has been coupled with the past tension of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is lack of employees that can match the difficult environment of a busy organization. Not just does this result in problem in discovering the best individuals, it puts stress on new hires as can not hold up against the rate and pressure that the company expects them to bear.

Dual Coverage Lines: Newbies locate this organizational society difficult as well as difficult to manage specifically as populated line relationships are indicated to be weak generally as well as unbiased setup and also efficiency analysis is still done by the strong line supervisor. This means that novices can shed clearness regarding their corresponding functions and goals particularly as populated line coverage does not maintain them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had been hypothesized that the last would take Krasnow's placement came as a strike to her spirits. Lewis might have been capable as well as suitable for the job yet the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Fear and also instability can be recognized as two significant worries that Lewis would be dealing with particularly as the merging has now be terminated and also two senior executives of the advertising department would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would not just supervise of brining about a social modification yet would certainly also have to prove herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's management style and also its conflict with the marketing department's function can additionally be viewed as an OB difficulty particularly as she has actually been utilized to taking care of issues in the operations division where personnel are educated to concentrate on processes and obtain them right. The advertising and marketing division on the various other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow who concentrated more on output than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between three departments, advertising and marketing, merchandizing and also procedures specifically over the allotment of the advertising mix can be determined as one more OB problem. Although the advertising division does not share the very same vision as the other 2 departments concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix appropriation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising divisions can be determined as an additional OB issue which could require more attention. The fact that the advertising and marketing areas in the advertising and marketing department are detached is protecting against both departments from getting from each various other's experience as well as knowledge. Combination of advertising and marketing with retailing and operations would become harder if the advertising and marketing department itself is broken down which can be one more possible OB worry.

Empire Blue Cross And Blue Shield E Analysis

Different theories have been used to describe the scenarios to get further quality about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors believe that subordinates are easy and careless, have little passion and also stand up to adjustment. The tough variation of this concept highlighted browbeating, tight controls, dangers and penalties. With time it generates reduced efficiency, subtle sabotage and rivalry (Bargain, 2003). The situation at Empire Blue Cross And Blue Shield E is not entirely adhering to Theory X, it can be seen that new hires are finding this atmosphere instead stressful which may eventually lead to a higher disposition of the monitoring in the direction of Theory X. According to McGregor's supported sight, which he called Concept Y, the crucial job of the administration is to set up business conditions to make sure that individuals can attain their very own objectives best by guiding their efforts towards business benefits. If individuals locate no fulfillment in their work, the monitoring would have little choice yet to depend on theory X and also external control (Deal, 2003). Even while analyzing Lewis's management design, concept X may have appropriated in the operations department somewhat however the Advertising and marketing department would certainly need dependence on Theory Y to get the imagination and originality from the groups.

Tuckman's Team effort Concept: As for Lewis's worry regarding bringing harmony between the marketing and advertising department is concerned, this would originally bring about conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the preliminary phase of group advancement, people might not bond, as they are active discovering their location in the team. By incorporating the marketing and advertising division's work, there might coincide initial separate which could lead to the second stage of 'storming' where the groups test one another. It is only during the 3rd stage or 'norming' when they would come with each other to share ideas before the team can bring around harmony in the 4th phase 'doing'.

When individuals are presented with modification, they enter phase one and also so there may be emotions like unhappiness, unpredictability, stress, rage, concern, denial and disorientation.The scenario at the advertising division of Empire Blue Cross And Blue Shield E is comparable so Lewis can get comfy with the suggestion that it is not extraordinary actions. It is throughout this stage that Lewis will certainly have to give advice to the division so that they can locate a sense of direction. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get included in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Requirement pecking order: The OB problem pertaining to instability at the workplace has been caused to start with by the modification in monitoring as well as second of all by the truth that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'security requires as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel protected as well as out of danger' is at the 2nd level of demands. Prior to an employee can be made to create mentally, he requires to have his 'Physical 'and also 'Safety and security' requires fulfilled. This shows that unless the workers are made to really feel protected about their existing employment standing in Empire Blue Cross And Blue Shield E they may not get to 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has checked out various theories to comprehend exactly how to cope with the current scenario available. The complying with 3 alternatives have been recommended to assist Lewis manage the organizational challenges in the advertising and marketing division. Each of these options has been recommended for easing the change required to bring the advertising division in line with the needs of the market and for making the social adjustment that would adhere to once the existing leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and Manufacturing features. Assimilation of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and advertising and marketing features.

The advantage of this method is that it will incorporate the two functions while lowering the demand for working with an extra source for marketing. Along with this, Lewis would be heading the advertising and marketing department as well as all the same her replacement would certainly be required for the present function that she is doing. The drawback of this choice is that external hiring might bring about bitterness from interior employees that might be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Offered the competitive pressures as well as premium quality work needed from the advertising agency, it is recommended that Lewis must enable the manufacturing unit to be a different function from the advertising and marketing device. Since a lot of advertising agencies had these two features as different devices, it makes more feeling to adhere to the norm. In addition to this, both functions might have the ability to concentrate on their core triggers extra effectively. The negative aspect of this method would be that extra prices would certainly have to be birthed for setting up different manufacturing functions. A manufacturing head might have to be hired which can boost expenses for the organization.

Assimilation of Advertising with Procedures: Since Lewis is currently taking treatment of the advertising and operations departments concurrently; it makes feeling to integrate the two functions considering that she has been successfully taking care of both ends. The truth that Lewis has to adapt her administration style for the marketing division suggests that these 2 departments would be culturally diverse.


An examination of the three options indicates that assimilation of marketing and also operations would not be a viable move due to the substantial distinctions in between the 2 divisions despite the truth that presently Lewis is managing both. While splitting up of the manufacturing feature may have been a favorable relocation for the marketing division, the reality that it would indicate placing a third function under Lewis's wing implies this must be stayed clear of.

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

Advertising and Marketing features would certainly be merged.

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

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

Lewis will certainly divide herself from operations.

A democratic management style with employee empowerment will certainly be used in advertising and marketing division.

Open up door plan and focus on cross departmental communication will certainly be targeted at getting rid of disharmony.

Contingency plan.

If the integration does not work out as intended, a backup plan would adhere to which would separate the production feature from the advertising function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. Because case the production function will certainly be divided by positioning it under an SVP manufacturing.